Advice scandal prevention requires investor differentiation

retail-investors/disclosure/government/

6 January 2015
| By Staff |
image
image image
expand image

The prevention of advice crises in a post-Murray financial system will hinge on differentiating between wholesale and retail investors, an investor registry head believes.

Sophisticated Access founder Peta Tilse said the failure to properly distinguish between the two investor types has been behind expensive advisory scandals, with the crux of the problems coming down to issues like disclosure.

"If the Government adopts the recommendations in the Murray Report, it is going to be even more critical for financial product providers and distributors to distinguish between the different investor types," Tilse says.

"Getting this wrong means the consumer may not be getting the right levels of disclosure, or access to financial products. These issues have been at the core of some of the recent advisory scandals, and very costly to all parties involved."

Tilse said the recommendations from the recent Financial System Inquiry advocate "fair treatment" of investors and believes this includes recognising their distinction and acting accordingly.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

6 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

8 months ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

3 weeks 3 days ago

ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay....

4 weeks 1 day ago

Despite the financial adviser exam being rooted in ethics, two professional year advisers believe the lack of support and transparency from the regulator around the exam ...

2 weeks 2 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
3