ASIC cracks down on false claims of 'independence'
The Australian Securities and Investments Commission (ASIC) has rapped 21 financial services licensees across the knuckles for incorrectly marketing themselves as 'independent'.
Following a recent surveillance project, the regulator identified 17 general insurance brokers, three financial planners and one life broker that made claims about their 'independence' in breach or ASIC's rules.
The licensees in question have all voluntarily complied with ASIC's requests to remove or amend the references.
ASIC commissioner Peter Kell said the regulator would not tolerate misleading statements made by the gatekeepers of the financial services industry.
"ASIC's first priority is to ensure people are receiving the information they need to make informed and confident financial decisions," Kell said.
"This action puts the broad financial services industry clearly on notice about ASIC's expectations. Going forward, where we find incorrect information about independence we will be taking stronger action, including publicly naming the licensees involved," Kell said.
Australian Financial Services Licensees are prohibited from using terms such as 'independent', 'unbiased' or 'impartial' if they receive commissions or volume-based payments, according to ASIC.
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