Senate Committee expected to report on ASIC/COMMFP

commonwealth-bank/ASIC/financial-planning/commonwealth-financial-planning/financial-services-industry/australian-securities-and-investments-commission/chairman/

25 June 2014
| By Staff |
image
image
expand image

Senior executives within both the Commonwealth Bank and the Australian Securities and Investments Commission (ASIC) will be bracing themselves for the expected release today of the Senate Committee Inquiry into the performance of ASIC. 

The Commonwealth Bank will be closely reading the Committee’s final report to determine whether it will have to dig deeper in terms of compensating clients impacted by the actions of now-banned Commonwealth Financial Planning (CommFP) advisers, while ASIC will be worried about the committee’s assessment of its general performance and its handling of the CommFP issue in particular. 

The committee handed down an interim report in late May and signalled it was extending its inquiry because, in mid-May, ASIC and the Commonwealth bank had advised that there had been inconsistences in the way in which the compensation arrangements for Comm FP clients had been applied.  

ASIC chairman, Greg Medcraft later apologised to the committee for the regulator having provided misleading information, however a supplementary submission by the Commonwealth Bank, details of which were released last week, suggested the regulator had always been made fully aware of the evolving compensation arrangements process. 

The Senate Committee’s final report is widely expected to recommend substantial improvements in ASIC’s operational procedures with respect to proactively oversighting the financial services industry, together with measures to better protect industry whistle-blowers. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 1 day ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 1 day ago

TOP PERFORMING FUNDS