Penalties not harsh enough: ASIC
Penalties for financial planners who breach the law are not severe enough, the Australian Securities and Investments Commission (ASIC) believes.
Speaking at the Senate Economic Legislation Committee, ASIC chairman, Greg Medcraft, said current legislation failed to dissuade planners from breaching the law.
“The penalties are out of date,” he said. “We need to have a fresh look so that people who intentionally break the law are effectively punished,” he said.
“At the moment the law doesn’t provide for compensation comparable to the losses.
“Some jurisdictions have triple damages¨ you’ve got to have a system that deals with greed versus fear¨ we’re in finance, it’s all about money.”
Medcraft described the civil penalties for breaches of financial services legislation was “woefully inadequate” in Australia compared to other countries.
Recommended for you
The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call.
Two national advice businesses have merged to form a leading holistic advice business with $2.5 billion in funds under management.
Insignia Financial has completed its transition of a range of administration and technology functions to SS&C Technologies as it seeks to be a leading wealth manager by 2030.
ASIC has permanently banned a financial adviser after he allegedly concealed information from clients and misused client funds, among other breaches.
