TheAustralian Securities and Investments Commission(ASIC) has reacted angrily to claims its regulation of the financial services industry is excessive.
ASIC director of FSR licensing Pauline Vamos strongly refuted comments made during last week’sAssociation of Financial Advisersconference that it was ‘a loose cannon’.
The comments followed those made byThe Argyle Partnership’s Peter Bobbin during his presentation on FSR.
He claimed ASIC has “overstepped the mark” in its regulatory activity, is “a loose cannon”, and is “baying for blood”.
Vamos responded with “we do not bay for blood, we do not go out for heads on sticks, we are there to regulate the industry”.
“We put crooks in jail, people who you do not want in your industry,” she says.
Vamos also tried to dispel adviser fears about implementing the new licensing regime, and emphasise ASIC’s role in assisting with the transition process.
“If you are deliberately misleading your clients, we will have grave concerns. If you tried to comply, then we’re going to help you out.”
Vamos defended legal action against advisers, saying ASIC is out to stop those who were acting dishonestly or unfairly.
