Fiduciary duty not the best approach

image
image
expand image

Newly appointed head of the UK equivalent of the Australian Securities and Investments Commission, Martin Wheatley, has hinted that fiduciary duty might not be the optimal approach to investor protection in the upcoming reforms.

Speaking at the Australian Centre for Financial Studies lecture, Wheatley said enhancing investor protection was pivotal to the reform process, but that a better approach was needed since ethical behaviour could not be legislated.

“[Rebuilding] investor confidence … will require greater use of judgement and a forward looking perspective, and pre-emptive actions to stem any potential build-up of risk before significant damage is done,” he said.

“Financial markets are about managing and pricing risk, not eliminating it,” Wheatley added.

Wheatley, who will soon become the head of the UK Financial Conduct Authority, had come out in support of greater regulatory intervention in retail and wholesale financial products, noting regulators and governments are now taking a more “considered” approach to reforms.

Homepage

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 1 week 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 1 week 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 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

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

2 weeks 5 days ago