Should ASIC have oversight on financial advice label?
The corporate regulator does not believe much difference will be made if it educated media outlets on reports that call people financial advisers when they are not.
During a Parliamentary hearing, Nationals Senator Susan McDonald pointed to a story by the Australian Broadcasting Corporation (ABC) that incorrectly labelled a man as a financial adviser. McDonald asked what oversight ASIC had to protect the industry given the strict regime advisers were held under.
Australian Securities and Investments Commission (ASIC) chief operating officer, Warren Day, said there was no limit on people calling others financial advisers and that a lot of people called themselves financial advisers who were unlicensed.
“That’s a matter for the ABC… and in relation to the way the ABC refers to a particular person, I don’t know that there’s anything we could add to that,” Day said.
“We’re not saying we won’t look at that and not take action against someone who is providing unlicensed financial advice.
“What I'm saying is how the ABC… refers to a person is not something that I think that we could necessarily do anything other than educate what the rules are to the ABC and I don't think that would make any difference.”
McDonald noted that it could be a starting point to communicate the story was incorrect and that if ASIC did not provide advice to the ABC about financial advisers she was not sure who else would.
Recommended for you
Financial advisers will have to pay around $10.4 million of the impending $47.3 million CSLR special levy but Treasury has expanded the remit to also include super fund trustees and other retail-facing sub-sectors.
While social media can have positive financial influence, the overwhelming risks signal a greater need for affordable advice as Australians continue to seek financial education on social media.
Fitzpatricks Advice Partners has released a guide on building a national advice firm with the argument that these firms are crucial to facilitating growth in the struggling profession.
ASIC has taken action against a South Australian financial advice provider who secured $1.4 million for purported investment in gold salvage from Solomon Islands shipwrecks.
