Advice industry failed on self-regulation - Medcraft
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.
AUTHOR
Mike Taylor
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
