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“The penalties are out of date,” he said.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
Former Iress chief executive, Andrew Walsh, has been promoted to chair of a boutique Sydney advisory firm, having stepped down from the same position at Mason Stevens.
Results are out for the latest sitting of the ASIC financial advice exam, with the pass rate falling for the second consecutive sitting.
Adviser losses for the end of June have come in 143 per cent higher than the same period last year, and bring the total June loss to over 350.
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
