ASIC needs to better engage with industry

The Australian Securities and Investments Commission (ASIC) is trailing other industry bodies when it comes to relevance and engagement with advisers, a financial planning group believes. 

In a submission to the Senate inquiry into the performance of ASIC, State Super Financial Services (SSFS) — a dual licensee and product manufacturer — said the commission needed a more structured approach to its interaction with financial service providers.

Unlike the Australian Prudential Regulation Authority (APRA), which plans regular visits and updates its research periodically, ASIC at times fails to keep up with emerging issues within the licensee space due to its irregular engagement, SSFS said.

It said regular reporting of issues, like APRA's quarterly statistics series, would allow ASIC to remain more current. Existing ASIC statistics are often out of date, it said.

"We have also seen through our membership with the Financial Planning Association (FPA) and Financial Services Council (FSC) that ASIC could seek a more effective engagement with these industry representatives," the submission said.

"The FPA in particular has assisted the financial planning industry transition into a profession and has strong relationships with licensees and a membership base of professionals."

The SSFS suggested linking closely with the FPA would help ASIC in its disciplinary capacity to better monitor what is happening in the industry.

One of the other issues of concern for SSFS was ASIC's "part of the problem" attitude to financial advice.

"We feel ASIC could be more proactive in encouraging consumers to seek out financial planning and continue to support the industry's journey towards professionalism," it said.