FSC welcomes new laws to protect consumers
The Financial Services Council (FSC) has welcomed the passage of new legislation, the Design and Distribution Obligation (DDOs) and Product Intervention Powers (PIP) Bill 2019, which aims to provide consumers with more protection from poor financial products.
Under the new legislation, financial services providers would be required by law to take a more customer focused approach when offering their products.
FSC’s chief executive, Sally Loane, said that the FSC looked forward to working with the Australian Securities and Investments Commission (ASIC) while the regulator was building a clear framework for how the new regime would operate.
“In the limited circumstances where there is an inappropriate product sold, ASIC will now be able to intervene to protect consumers,” she said.
“While this is an important power for ASIC, the FSC believes the greatest consumer benefit comes from quality advice and products appropriate for the goals and needs of individuals.”
AUTHOR
Oksana Patron
Recommended for you
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
National advice firm Invest Blue has announced several acquisitions, including the purchase of an estate planning and wealth protection business Lambert Group.
