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“The penalties are out of date,” he said.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
In a tight race against Morgans, AMP Financial Planning has won back its position as the largest individual licensee in Australia, according to Wealth Data.
Learning to delegate authority and relinquish a hands-on approach is a critical step towards building a self-sustaining financial advice practice, says Assured Support.
Private wealth management company Stellan Capital has appointed a new chief executive, who brings over three decades of experience in the global financial services industry.
With AMP advisers moving to Entireti and Insignia being the subject of a private equity bidding war, how can deals be navigated to ensure minimal stress and uncertainty for staff and advisers?
