Green shoots of positive culture emerge
There was ample evidence of "green shoots" around better cultural indicators emerging in the financial advice space but the journey had by no means been completed, according to the Australian Securities and Investments Commission (ASIC).
Speaking at the Association of Financial Advisers' (AFA) 2016 National Adviser Conference opening ceremony via video on Wednesday, ASIC deputy chair, Peter Kell, said he was very optimistic about the direction of the industry based on the discussions that were occurring now that were not discussed in the past.
"You've got on the one hand some of the key law reforms such as putting the best interests of the clients first through to initiatives in industry itself is taking," Kell said.
"I look at your organisation, your focus on professionalism, and that real commitment to raising standards. I look at things like the discussions that are taking place around how we can make sure that we have appropriate ethical standards in place. I mean those sorts of things weren't happening a few years ago."
Kell said financial advice organisations must ensure their values and stated commitments aligned with the way the firm operated, where remuneration structures, measurement performance, and dealing with staff members who raised red flags over problems reflected and supported good culture rather than undermining it.
While there was a long road ahead, Kell was positive about the future.
"This will be a very different industry with a much higher level of trust in a few years," Kell said.
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