FASEA Professional Conduct 2

Question 1

Under the FASEA Code of Ethics, which standard requires financial advisers to act with integrity in all professional dealings?

Accepted Answer

Standard 1 – Ethical behaviour

Answer

Standard 1 of the FASEA Code of Ethics requires advisers to act ethically and with integrity in all professional dealings.

Question 2

A financial adviser discovers a colleague has been making false statements to clients. What is the adviser's professional obligation?

Accepted Answer

Report the misconduct through appropriate channels

Answer

The FASEA Code requires advisers to uphold professional standards, which includes reporting known misconduct through appropriate channels.

Question 3

Which of the following best describes the 'client care' obligation under FASEA Standard 3?

Accepted Answer

Placing the client's interests above all others, including the adviser's own

Answer

Standard 3 requires advisers to prioritise the client's interests and not let self-interest or the interests of a third party override client welfare.

Question 4

Under FASEA requirements, what must an adviser do before providing personal advice to a retail client?

Accepted Answer

Identify and manage any actual or potential conflicts of interest

Answer

Advisers must identify and appropriately manage actual and potential conflicts of interest before providing personal advice.

Question 5

A client instructs their adviser to execute a strategy the adviser believes is not in the client's best interest. What should the adviser do?

Accepted Answer

Explain the concern clearly, document the discussion, and act in accordance with professional obligations

Answer

Advisers should clearly communicate concerns, document the interaction, and balance client autonomy with their professional obligation to act in the client's best interest.

(FASEA) Financial Adviser Standards and Ethics Authority Practice Test

(FASEA) Financial Adviser Standards and Ethics Authority Practice Test

FASEA Professional Conduct 2