ASIC reminds CBA on its breach obligations
The financial planning activities of the Commonwealth Bank and the implementation of its new compensation arrangements will remain under close scrutiny by both the Australian Securities and Investments Commission (ASIC) and the Federal Government.
ASIC has responded to the Commonwealth Bank’s announcement of its so-called “Open Advice Review Program” by reminding the big banking group that it has ongoing obligations to report any breaches it uncovers as it implements its remediation program.
“In the event any breaches of law are identified in this program, ASIC requires those breaches to be reported in accordance with the law on breach reporting,” ASIC said in a formal statement. “The law requires that significant breaches or likely breaches are reported to ASIC as soon as practicable, or in any event within 10 business days of the licensee becoming aware of the breach or the likely breach.”
ASIC’s admonition with respect to the remediation process came at the same time as it declared that it was close to finalising the license conditions which would be imposed on the bank’s financial planning arms.
In the meantime, the Minister for Finance and Acting Assistant Treasurer, Senator Mathias Cormann has welcomed Commonwealth Bank chief executive, Ian Narev’s announcement of the Open Advice Review Program and stated that the Government will be monitoring its implementation.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
