Bushby issues dissenting report
The deputy chairman of the Senate Inquiry, Tasmanian Liberal Senator, David Bushby, has issued a dissenting report in which he urges against a number of the key recommendations, including the need for a royal commission or judicial inquiry.
In doing so, Senator Bushby has suggested that most of the issues which would be traversed by a royal commission have already been extensively examined by the Senate Committee, the Australian Securities and Investments Commission and the police.
“Although a Royal Commission might recommend improved practices, existing institutions have already been at work exploring and driving wide-scale reform in the financial sector,” his dissenting report said. “ASIC’s investigation into CommFP also predates the substantial changes to the regulation of financial advice under the Future of Financial Advice (FOFA) reforms, which have imposed strong obligations on advisers to prioritise their clients’ interests over their own and to act in their clients’ best interests.”
Senator Bushby said that, in addition, ASIC’s actions have greatly transformed the practices, culture, compliance and quality of advice provided through CommFP as well as delivering $51 million in compensation to date, with the potential for additional compensation to over 4,000 people under the new license conditions.
“Given these circumstances, and given that the law has changed and will possibly change again following the Financial Systems Inquiry (FSI), a Royal Commission or any other inquiry will incur significant cost to taxpayers without delivering any greater level of understanding or financial restitution,” his dissenting report said.
“A fresh review of files and individual cases could protract the emotional strains on victims of malpractice over a longer time period, without the advantage of offering additional remedies beyond those that are already being worked through.”
Money Management’s coverage of the Senate Committee report into the performance of ASIC:
Senate Committee recommends royal commission
CBA refutes senator's deflection claims
ASIC should face regular reviews
Senate report calls for adviser banning powers and increased penalties
Report calls for higher education standards and enshrinement
Expect ASIC to be more rigorous
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