ASIC not looking into AMP BOLR issue
It is not in the "jurisdiction" of the corporate regulator to look into AMP’s strategy that would significantly reduce payouts from its buyer of last resort (BOLR) arrangements, the Australian Securities and Investments Commission (ASIC) has said.
Speaking at a Parliamentary Joint Committee today, ASIC chair, James Shipton said that the evidence surrounding the affected planners was a commercial dispute between the parties and it understood that the parties that were pursing this matter was to do with private rights or actions.
“There is no evidence it is within our jurisdiction and that’s where we view the matter,” Shipton said.
“…if there are further and better particulars on this matter than we would be very prepared to review that and amend our conclusion.”
The arrangements would see an exit of around 250 financial planners and when asked by Senator Deborah O’Neill on whether the exits and financial burdens it would place on the planners would be sufficient enough for ASIC to investigate, Shipton said that was a broader issue that the regulatory was aware of.
“We see the shifts commercially and environmentally in the industry and we are monitoring it because we are worried about unmet advice needs,” he said.
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
