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 financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
