ASIC wants tougher line on advice failures

peter kell ASIC financial planning financial planning firms advisers australian securities and investments commission

1 April 2014
| By Jason |
image
image
expand image

The Australian Securities and Investments Commission (ASIC) will seek to ban management figures in financial planning firms that are involved in advice failures. 

ASIC deputy chair Peter Kell said the regulator would seek an extension to its powers to ban those who do not provide advice but are integral to its provision and any failures related to that advice. 

“We can ban advisers but find that those who manage advice move onto new businesses and new roles,” Kell said, speaking at the Money Management/Super Review Future of Financial Service Regulation breakfast in Sydney this morning. 

“If they are not involved with advice, we cannot ban them, even if they are involved in serious failings related to advice. 

“For ASIC it would be better if we could ban those in management as well, where there have been specific failures.” 

Kell said that ASIC was aware of a number of cases where management figures involved with failures had been able to take on new roles, while advisers had either been removed from the sector or placed under disciplinary action. 

Kell said ASIC had made the recommendation to the Senate Inquiry into the performance of ASIC and would do so again to the Financial Systems Inquiry. 

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 3 weeks 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 3 weeks 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 3 weeks ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

1 week 2 days ago

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

4 weeks 1 day ago

The Reserve Bank of Australia's latest interest rate announcement has left punters disheartened on Melbourne Cup Day....

1 week ago