Canberra admonishes regulator over Grant comments

Canberra has criticised the Australian Securities and Investments Commission (ASIC) for negative comments one of its senior executives made about financial planners at a public function.

A federal joint parliamentary committee has also called for ASIC to set standards so its officials don’t make inappropriate comments in public.

Last August, ASIC assistant director of compliance Sharman Grant said during a presentation at a CPA Australia conference in Sydney that she did not have a financial planner “because I just don’t trust them”.

Grant also described trail commissions as a “joke”.

Her comments sent shockwaves through the industry and prompted the chief executive of the Financial Planning Association (FPA), Kerrie Kelly, to write to ASIC chair Jeffrey Lucy requesting he take action against Grant.

“The committee retains some concern that [Grant’s comments] reflect a poor perception of financial planners on the part of ASIC and have the capacity to undermine public confidence in the financial planning [industry],” said committee chair Senator Grant Chapman.

The committee did, however, express confidence that ‘comments of this nature will not be repeated’, and stated that “overall, ASIC and the financial planning industry enjoy a productive working relationship”.

The FPA welcomed the committee’s determination regarding Grant’s comments and was also happy with its endorsement of the financial planning industry’s response to findings critical of planner conduct revealed in last year’s super switching campaign.

“The parliamentary committee recognised that those reports were at a point in time. A lot had happened since then and even ASIC is saying that there’s been improvements in the advice that people are receiving from their planner on superannuation,” said FPA manager, government relations, John Anning.

ASIC, meanwhile, indicated to the committee that investigations resulting from the super switching campaign completed last year were continuing, with an investigation into “a major financial planning dealer group” still underway.