ASIC issues warning on general advice
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.
Recommended for you
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.
Sequoia Financial Group has seen a top-level reshuffle as the chair of the board, John Larsen, steps down after five years in the position.
As statements of advice move into the rear-view mirror, Vital Business Partners explores how financial advisers are adopting innovative documentation strategies.
Adviser Ratings has explored whether there is a financial benefit to advice firms seeking to have a specialised client base in terms of client assets and fees charged.