The SMSF Association noted that the updated guidance gives greater importance to the intent of the standards which was unclear in the preceding FASEA documentation and guidance.

However, it stated that the “strict wording of the standards and the more nuanced wording of the intent and guidance are incompatible”.

SMSF Association chief executive John Maroney said while the SMSF Association supports the broader intent of each standard in the code, in its opinion, the code would be improved if many of the standards were amended to reflect the intent.

“Ultimately, it is only the written code that is determinative, particularly years into the future,” Mr Maroney said.

“The intent of Standard 3, which references the ‘client’s best interests’ while the actual standard doesn’t, is a perfect example. Until the standards in the Code of Ethics are amended, the industry will continue to refer to the written code as determinative.”

The association is also calling on FASEA to issue a further guidance document explaining how a financial adviser can provide single-issue or scaled advice that complies with its Code of Ethics.

“Although more guidance is a welcome step forward, we fear it remains ambiguous as to how it relates to single-issue or scaled advice,” Mr Maroney said.

“We believe a key challenge for the advice sector is how to service clients’ advice needs that may be limited to a single-issue or for scaled advice needs, for example, superannuation. This is particularly pertinent for SMSF advisers and SMSF trustees.”

Mr Maroney said the association supports the part of guidance which states that the code is not seeking this type of advice — only to ensure that it is provided where appropriate.

“However, we believe the guidance needs to provide advisers with clarity on ‘how’ this type of advice can be provided. The way Standards 2, 5 and 6 apply practically for advisers acting under a scoped authorisation or a limited AFS licence remains unclear,” he stated.

Mr Maroney stated that the SMSF Association and other professional bodies are committed to addressing scaled advice and its impact on the “advice gap” and would welcome the opportunity to work collaboratively with FASEA to help develop and implement changes which would improve the provision of single-issue and scaled advice.