ASIC identifies firms charging for non-existent advice
The Australian Securities and Investments Commission (ASIC) says it has identified and is investigating multiple instances of financial planning firms charging clients for financial advice which has not been provided.
The regulator has signalled its action as part of an update on its Wealth Management Project which is focusing on the conduct of the largest financial advice firms.
In an announcement released today, ASIC said it was "investigating multiple instances of licensees charging clients for financial advice, including annual advice reviews, where the advice was not provided".
It said most of the fees had been charged as part of a client's service agreement with their financial adviser.
ASIC deputy chairman, Peter Kell, said the regulator would "consider all regulatory options, including enforcement action, where we find evidence of breaches of the law relating to fees being charged where no advice service has been provided".
"We will look to ensure that advice licensees follow a proper process of customer remediation and reimbursement of fees where such breaches have occurred," he said.
The ASIC announcement said the Wealth Management Project had been established in October last year with the objective of lifting standards in major financial advice providers. Under this project ASIC is carrying a number of investigations and is conducting a range of proactive risk-based surveillances with particular focus on compliance in large financial institutions.
The regulator said its investigations were continuing.
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.
