ASIC’s plan to ban high risk advisers
The Australian Securities and Investments Commission (ASIC) has confirmed it is continuing its surveillance of advisers it regards as being high risk with a view to banning those with serious compliance concerns.
The regulator’s intentions have been outlined in its Business Plan covering 2017 in which it has confirmed its agenda with respect to the financial planning sector.
However one of its most serious references is that made to “Surveillance of advisers identified as having a high risk of non-compliance”.
“In 2017–18, we will establish a program to ban advisers with serious compliance concerns and to monitor licensees' remediation programs,” the ASIC Business Plan said.
In the life/risk area, the ASIC Business Plan also referenced how it intended using the new data it was collecting from the major insurers, referring to “Advisers with a higher likelihood of providing non-compliant advice, as identified through life insurers' exception reports”.
The Business Plan also confirmed the continuation of ASIC’s current surveillance and shadow shopping exercise aimed at advice around self managed superannuation funds (SMSFs), referring to “Testing the quality of SMSF advice by reviewing advisers' legal compliance with their best interest duty in providing advice to consumers who set-up an SMSF”.
Recommended for you
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.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
Australian licensees are expected to make greater use of custom model portfolios for their clients, according to State Street Investment Management, following in the footsteps of US peers.
Adviser Ratings has argued that it’s time for more advisers to utilise digital engagement tools available to them as a disconnect grows between consumers seeking advice from finfluencers and from professionals.
