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The Australian Securities and Investments Commission (ASIC) has signalled it believes changes are necessary to planner remuneration.
The chairman of ASIC, Tony D’Aloisio, has told the Investment and Financial Services Association conference the regulator’s views will be outlined in submissions to the current parliamentary and other inquiries.
He said the remuneration model needed reviewing, not least front-end fees and commissions, which did not sit comfortably with the best interests of clients.
The ASIC chairman also referred to the need to remove incentives that could be regarded as distorting the provision of advice.
D’Aloisio said while ASIC had responded strongly to events, the response was not enough to avoid regulatory change in circumstances where the global financial crisis had revealed flaws.
