18 Nov 2009

More disclosure by financial advisers proposed

12:50 pm on 18 November 2009

Financial advisors could soon be required to declare whether they receive commissions if customers act on their advice.

The Code Committee for Financial Advisors has proposed minimum standards of ethical behaviour and client care for the industry and is calling for submissions on the proposal.

Committee chairman Ross Butler says advisors may have to disclose to their clients if they have a relationship with a financial product company.

Mr Butler says financial advisors who receive commissions from such companies could soon be unable to call themselves independent.