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
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
