ASIC canvasses going public on insto APLs
The Australian Securities and Investments Commission (ASIC) has canvassed going public on the make-up of the approved product lists (APLs) within the major banks and AMP.
In a blunt report detailing the level of non-compliant advice within the major institutions together with the conflicts of interest inherent in vertically-integrated structures, ASIC canvassed the need for greater transparency.
The regulator also signalled that the findings of its project investigating the major banks and AMP would have implications for other planning licensees.
It said it would look to consult with the financial advice industry and other relevant groups on introducing public reporting on APLs and where client funds are invested for advice licensees that are part of a vertically integrated institution.
“This would provide some transparency around management of the conflicts of interest that are inherent in vertically integrated business models,” the regulator said.
ASIC said it would also be discussing with the big banks and AMP what it regards as being an appropriate response to its findings “to improve their processes for managing conflicts of interest.
“It is likely that initiatives implemented by these advice licensees can be scaled to address similar concerns at other advice licensees,” it said.
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