ASIC gets tough with planners over Y2K
Regulators are set to apply the heat to financial planning groups and broking groups on Y2K readiness, following apparent apathy over the problem.
The Australian Securities and Investment Commission (ASIC) says it is embarking on "follow up action" after a poor response to a recent survey by the regulator.
Only half of 700 groups surveyed on Y2K readiness responded which has lead to concern from ASIC that those that failed to respond may be "in breach of the law by putting consumer's funds at risk".
"ASIC believes that Year 2000 readiness is necessary for licensees to meet their obligations under the law," says ASIC chairman Alan Cameron.
"Failure to do so could provide grounds for disciplinary action."
"We are disturbed by the low rate of response to our survey. It is vital at this time that financial service firms are taking the Y2K issue seriously and are doing all they can to deal with it."
Concerns over readiness for Y2K has prompted ASIC to write to all 3000 securities licensees and insurance brokers asking them to give details about their Y2K preparedness. The letters will be sent in in mid-April and all responses are to be back by mid-May. ASIC expects that most people will respond to the letter.
Cameron said that any people who do not respond can expect a visit from ASIC officers to discuss their Y2K preparedness.
While ASIC is concerned about the lack of response to the survey, those that did respond appear to have put steps in place to meet the problem. About 75 per cent of indicated they had a formal plan in place to deal with the issue.
Concerns about apparent complacency have been echoed by Zurich Financial Services, who launched a program six months ago to assist financial advisers counter the potential problem. Zurich says advisers have been slow to take on the program.
Business support manager Rod Bertino says many financial advisers still believe the millienium bug problem is "simply a media beat-up" and grossly underestimate the very real threat it poses to their business.
AUTHOR
Recommended for you
Wealth Data has revealed the top five licensees for financial adviser growth over the September quarter, with more than 150 advisers joining in Q3 overall.
Former Sydney financial adviser, David Valvo, has pled guilty in court to a charge of dishonest conduct.
Building a network of mentors and coaches with varied skill sets could help women achieve their career goals, according to an FBAA executive.
AMP has reported its Q3 results and provided a progress update on the divestment of its advice division to Entireti.
