The financial advice industry reflected a failure of self-regulation which led to external regulation, according to Australian Securities and Investment Commission chairman, Greg Medcraft.
Speaking at the Financial Services Council conference in Brisbane, Medcraft said he was a believer in industry self regulation but this had not occurred in the advice sector.
He said he believed it was incumbent on industry organisations to provide guidance, to identify trends and address problems when they occurred.
Medcraft said this had not happened in the advice area.
"There was a failure of self regulation and they got regulated," he said.
