Advisers have little faith in ASIC
Financial advisers are sceptical about the corporate regulator’s ability to monitor and prevent malpractice, according to research conducted by CoreData.
More than 49 per cent of advisers surveyed in the wake of the Ripoll Inquiry recommendations last week said they had no confidence in the Australian Securities and Investments Commission’s (ASIC’s) ability to monitor and prevent malpractice and financial product collapses — even with increased powers.
CoreData analyst Kristen Paech said only 1.3 per cent of advisers surveyed were fully confident in ASIC’s ability in the areas described, with less than a third of respondents believing ASIC does a good job in regulating the advice industry.
Opinion was split about whether increased powers granted to ASIC, as recommended in the final report of the Parliamentary Joint Committee (PJC) chaired by Bernie Ripoll, would improve regulation of the financial advice industry.
The survey of 236 advisers was conducted in the second half of last week, after the final report of the Ripoll Inquiry. Sixty-four per cent of respondents were against the abolition of commission payments, while 77 per cent of respondents felt conflicts of interest in the financial advice industry would not be stamped out if the PJC’s recommendations were adopted.
Furthermore, more than half of the advisers surveyed were concerned their professional indemnity costs would rise if the recommendations were adopted.
Recommended for you
ASIC commissioner Alan Kirkland has detailed the regulator’s intentions to conduct surveillance on licensees and advisers who are recommending managed accounts, noting a review is “warranted and timely” given the sector’s growth.
AMP and HUB24 have shared the areas where they are seeking future adviser growth, with HUB24 targeting adding more than 2,000 advisers to the platform.
Bravura Solutions has appointed a new chair and deputy chair to take over from departing Matthew Quinn, while Shezad Okhai picks up another responsibility.
Two advisers say M&A is becoming a “contact sport” as competition heats up to acquire attractive advice firms, while a lack of new entrants creates roadblocks in organic growth opportunities.
