ASIC issues warning on general advice

16 October 2019
| By Mike |
image
image
expand image

The Australian Securities and Investments Commission (ASIC) has issued a warning to financial service firms seeking to operate under ‘general advice’ models.

ASIC commissioner, Danielle Press said that ASIC was seeking to address misconduct and consumer harms that might arise from the industry’s shift towards ‘general advice models’ including consumer testing more appropriate labels and alternative warnings for general advice.

She said the work was intended to build on ASIC’s Mid the Gap report published earlier this year which revealed substantial gaps in consumer comprehension of general and personal advice.

Press said that ASIC would also be commissioning further research in 2020-21 to explore whether consumers had unmet advice needs in a project which would examine the state of the financial advice industry, the demand for and supply of financial advice and what measures might be required to reduce any gaps between supply and demand.

“Finally, we are also assisting Treasury to implement the other Royal Commission recommendations relating to financial advice for which legislation is expected to be introduced and passed by mid-2020,” she said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago