Certainly subsection 43(1) does specify that it's the minister, and that any further changes proposed by the board would have to be approved by the minister.
The code of conduct is not set out in the statute, because that would require legislative amendment every time it needed to be updated for any reason, but it would be set out in subdelegated legislation, by regulation. The code would include such things as improper and incompetent conduct, and there would be disciplinary action flowing from that.
In the scenario the member provided, it's difficult to speculate, but I think disciplinary action could flow from providing counselling of a false claim. Counselling misrepresentation would also be an offence under IRPA.