Extend the ABA adviser protocol says ASIC
The Australian Bankers’ Association (ABA) adviser reference checking protocol should be extended across the entire financial planning industry, according to the Australian Securities and Investments Commission (ASIC).
Giving evidence before a Parliamentary Committee, ASIC deputy chairman, Peter Kell expressed the regulator’s frustration at the number of bad apples which remained in the industry due to a lack of appropriate checks by planning groups.
Under questioning from Queensland Liberal National Party backbencher, Bert van Mannen, Kell pointed to the ABA approach.
“To be blunt, it's been a source of very considerable frustration for ASIC for some time—these bad apples circulating around—in terms of licencees who don't provide adequate references or information to the firm that the adviser is going to; and, frankly, the firms who don't seek adequate information,” he said.
“We note that the Bankers' Association is looking to develop a protocol in this area for reference checking. Our view is that that, frankly, should extend across the entire industry, and we've had that discussion with the ABA,” Kell said.
“It shouldn't be some exclusive ABA thing, because that would only get you part of the way there,” he said.
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