ASIC urged to be specific
The Australian Securities and Investments Commission (ASIC) has been told it needs to be more specific when providing case studies of conflicts of interest.
The Association of Superannuation Funds of Australia (ASFA) has called on ASIC to include more specifics in the case studies it is proposing to include in regulations dealing with conflicts of interest.
In a submission to ASIC responding to the regulator’s discussion paper dealing with managing conflicts of interest in the financial services industry, ASFA expressed concern that the examples used by ASIC were “very simple and not practical in addressing often highly complex business situations”.
The submission, developed by ASFA’s director of policy and research Dr Michaela Anderson, said many of the examples were, in the first instance, a breach of a specific requirement of the law, rather than about management of conflicts.
“The loosely based case studies used have the potential to become benchmarks imposed on the industry by regulators and auditors for a ‘one size fits all’ approach, which should not be supported,” the submission said.
ASFA said rather than case studies, ASIC should be providing more specific guidance on how the principles might be implemented in practice.
Recommended for you
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.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.