Commonwealth Financial Planning enters compensation program
Commonwealth Financial Planning (CFP) has entered into a client compensation program following an investigation by the Australian Securities and Investments Commission (ASIC) relating to a former adviser who gave inappropriate advice.
ASIC announced the arrangement with CFP, which it said had agreed to identify those affected and assess liability and appropriate compensation.
ASIC said CFP had adopted a cooperative and consultative approach to the problem.
It said CFP was reviewing relevant client files to identify individuals who had been adversely affected and that an independent expert would review the implementation of the program and compensation offers.
AUTHOR
Mike Taylor
Recommended for you
Proposed legislative changes to safe harbour duty could result in advisers having reduced professional indemnity costs, a joint submission by seven major licensees said.
With 66 per cent of newly established advice licensees being sole advisers, what are the risks and legal ramifications to consider when taking the plunge into self-licensing?
Despite its popularity, only 1 per cent of financial advisers say they have often discussed cryptocurrency with clients, CoreData said, fuelled by concerns of heavy legal expenses if the product goes wrong.
AFCA and the CSLR have signed a memorandum of understanding as to how they will support an efficient financial services sector via the scheme.
