The Australian Securities and Investments Commission (ASIC) has issued a warning to financial service firms seeking to operate under ‘general advice’ models.
ASIC commissioner, Danielle Press said that ASIC was seeking to address misconduct and consumer harms that might arise from the industry’s shift towards ‘general advice models’ including consumer testing more appropriate labels and alternative warnings for general advice.
She said the work was intended to build on ASIC’s Mid the Gap report published earlier this year which revealed substantial gaps in consumer comprehension of general and personal advice.
Press said that ASIC would also be commissioning further research in 2020-21 to explore whether consumers had unmet advice needs in a project which would examine the state of the financial advice industry, the demand for and supply of financial advice and what measures might be required to reduce any gaps between supply and demand.
“Finally, we are also assisting Treasury to implement the other Royal Commission recommendations relating to financial advice for which legislation is expected to be introduced and passed by mid-2020,” she said.