ASFA argues for primacy of ASIC
The Australian Securities and Investments Commission should be retained as the primary consumer protection regulator for financial services, according to the Association of Superannuation Funds of Australia (ASFA).
ASFA has used a submission to the Productivity Commission’s Review of Australia’s Consumer Policy Framework to argue that financial services require a regulator that has the depth of specialist knowledge necessary to understand complex and highly technical issues.
As well, it said that that financial services regulation was increasingly global and behaviour-driven rather than rule-drive.
The ASFA submission said that, importantly, the impact on consumers could be significant when things went wrong.
It said, however, that ASFA agreed that ASIC might need to work more closely with the Australian Competition and Consumer Commission to minimise the risk of both duplicated enforcement effort and inadvertent failure to fully regulate some financial activities.
The submission said that the extension of a generic consumer law to financial services would need some modifications and cited as an example the likelihood that the extension of strict liability to misleading and deceptive conduct having the potential to lead to risk-averse behaviour including longer and more complicated disclosure documents.
It said this was likely to decrease, rather than increase, the ability of consumers to understand disclosure documents.
AUTHOR
Mike Taylor
Recommended for you
Insignia Financial has issued a statement to the ASX regarding a potential bid from a third global private equity business to acquire the firm.
More than 30 advisers fell off the FAR during the Christmas and New Year period, according to Wealth Data, with half of these coming from licensee giant Entireti.
With next-generation heirs unlikely to retain their family’s financial advisers after receiving an inheritance, Capgemini has explored how firms can work with younger generations to maintain a relationship.
The use of technology and data analytics will be a way for advice firms to grow in 2025, according to Adviser Ratings, with those who are using it successfully reporting 10 per cent higher profit margins.
