ASIC targets misuse of ‘general advice’
Australian Financial Services license (AFSL) holders who misuse the provision of general advice to retail clients will find themselves being scrutinised by the Australian Securities and Investments Commission (ASIC).
The regulator has signalled its intention in its latest Enforcement Outcome Review report where it listed the misuse of general advice as an issue to which it would be paying particular attention over the next six months.
ASIC specifically cited “instances where AFS licensees claim to provide general advice to retail clients during the sale of financial products (and therefore do not need to comply with the best interests duty and related obligations), but are actually providing personal advice”.
Importantly, ASIC said it would also be paying particular attention to financial adviser compliance with the best interests duty and “their obligation to provide appropriate advice to clients.”
ASIC also signalled that it would be continuing the activity which gave rise to its so-called “fee for no service” report, stating that it would examining any failure by AFSLs to deliver ongoing advice services to financial advice customers who are paying fees to receive those services.
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
