No appeal against licence removal: FOS
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Financial services providers should not be allowed to appeal against the removal of their financial services licence in cases of bad advice, according to the investments, insurance and super ombudsman for the Financial Ombudsman Service, Alison Maynard.
Speaking at the public hearings of the Parliamentary Joint Committee Inquiry in Melbourne, Maynard said it was a “problem” that financial services providers were allowed to make an appeal to the Australian Securities and Investments Commission (ASIC) if the regulator threatened to remove their licence.
“What I see is ASIC doing a critical job [of investigating and taking away the licence], and then the financial services provider can make appeal … and get the licence back because ASIC can see the writing on the wall,” she said.
Financial services licences could be made harder to get in relation to implementing strategies to meet obligations of good advice, Maynard said.
Maynard also suggested that standards of education and training be raised to different levels depending on the products and type of advice provided by a financial planner.
There are obligations on licensees and “basic RG 146” requirements, but they could be beefed up, she said.
AUTHOR
Benjamin Levy
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