FASEA Professional Ethics and Standards 3

Question 1

FASEA Standard 9 requires advisers to maintain confidentiality of client information. An adviser may LEGITIMATELY disclose client information without consent when:

Accepted Answer

Required to do so by law or a court order

Answer

Legal obligations such as court orders or regulatory requirements are recognised exceptions to the confidentiality duty.

Question 2

Under the FASEA framework, the 'best interests duty' differs from a 'suitability standard' in that it:

Accepted Answer

Requires advice to genuinely benefit the client, not merely be appropriate

Answer

The best interests duty goes beyond suitability by requiring advice that genuinely serves the client's interests, not just passes a threshold test.

Question 3

When managing a conflict of interest under the FASEA Code of Ethics, which approach is MOST preferred?

Accepted Answer

Avoid or eliminate the conflict where possible before disclosure

Answer

The preferred hierarchy under FASEA is to avoid conflicts first; if unavoidable, disclose and manage them transparently.

Question 4

Under the FASEA education requirements, financial advisers who were registered prior to 1 January 2019 were classified as:

Accepted Answer

Existing providers given transition pathways to meet new requirements

Answer

Pre-existing registered advisers were classified as 'existing providers' with staged transition arrangements under FASEA's implementation framework.

Question 5

An adviser working for a dealer group receives instructions from management that conflict with the adviser's ethical obligations to a client. The FASEA framework requires the adviser to:

Accepted Answer

Prioritise their ethical obligations and client's best interests over employer instructions

Answer

FASEA's Code of Ethics places the adviser's ethical obligations above employer or licensee instructions when they conflict.

(FASEA) Financial Adviser Standards and Ethics Authority Practice Test

(FASEA) Financial Adviser Standards and Ethics Authority Practice Test

FASEA Professional Ethics and Standards 3