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
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.
