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A general insurer pays an adviser's licensee a commission on a home building policy the adviser arranged. The client gave informed consent. Under Standard 7, may the adviser accept the benefit?
Standard 7 of the Financial Planners and Advisers Code of Ethics 2019 bars benefits from third parties other than the principal 'except where expressly permitted by the Corporations Act 2001', requires free, prior and informed consent to benefits, and requires fees and benefits to be fair, reasonable and value for money. General insurance commissions are expressly permitted by s963B(1)(a) of the Corporations Act (compilation 19 Sep 2026), subject to informed consent under s963BB. The Code covers all relevant providers' conduct regardless of product.
Standard 7 is not an absolute ban; it defers to what the Corporations Act expressly permits.
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