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“The penalties are out of date,” he said.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.
AUTHOR
Staff Writer
Recommended for you
A former AMP adviser told the Federal Court how they are scared to turn off their phone after a fellow adviser attempted suicide as Justice McElwaine said the 92 objections “weighed heavily” on his mind.
Providence Wealth Advisory Group has appointed a new chief investment officer, a dedicated position after the role was previously held by its CEO.
While hiring new staff in a financial advice practice inevitably incurs expenses, Striver’s Alisdair Barr says the greater business cost can come from losing the skills of a valuable team member.
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
