Are some advice remediation programs flawed?
The robustness of the advice remediation programs conducted by the major banks has been questioned by an academic who has suggested some of the work has been carried out by contractors unqualified to deal with complex problems.
Adjunct professor in finance, Shantha Yahanpath has foreshadowed problems in the future from remediation programs which he claimed had been outsourced to consultancy firms which, in turn, had “sourced ‘contractors’ from recruitment companies and armed these contractors with ‘hot-housed’ financial planning diplomas”.
“Having taught financial planning programs at tertiary level, I can safely say that a financial planning diploma ‘hot housed’ within weeks is of little value even to handle simple financial planning problems let alone complex remediation problems,” Yahanpath said.
“The question is how robust these remediation programs handled by the ‘hot housed’ contractors are?” he said. “Most of the contractors use these programs as a short-term stepping-stone opportunity and some leave due to burn-out. Haven't they learnt anything from the problems created in the first place by taking short-cuts and keeping the regulators in the dark?”
Yahanpath claimed what was occurring in some remediation program was at odds with good enterprise risk management.
Recommended for you
Despite the year almost at an end, advisers have been considerably active in licensee switching this week while the profession has reported a slight uptick in numbers.
AMP has agreed in principle to settle an advice and insurance class action that commenced in 2020 related to historic commission payment activity.
BT has kicked off its second annual Career Pathways Program in partnership with Striver, almost doubling its intake from the inaugural program last year.
Kaplan has launched a six-week intensive program to start in January, targeting advisers who are unlikely to meet the education deadline but intend to return to the profession once they do.
