ASIC seeks out bad apples at industry core
By Rebecca Evans
THE Australian Securitiesand Investments Commission (ASIC) has teamed up with five industry groups to form a consultation panel to assess strategies to prevent ‘bad apple’ advisers from entering the market.
The panel has representatives from ASIC, the Financial Planning Association (FPA), the Investmentand Financial Services Association (IFSA), the Securitiesand Derivatives IndustryAssociation (SDIA), the National Insurance Brokers Association (NIBA), and the Australian Compliance Institute (ACI).
The panel will consider how to improve practices for reference checking within the financial services industry by identifying any barriers to the provision of appropriately candid, factually-based references, and proposing practical measures to enhance the referencing process.
ASIC’s executive director, consumer protection and international relations Greg Tanzer says reliable references play an important role in reducing the potential for poor quality or dishonest advisers to either move within or remain in the financial services industry.
“Australian financial services licensees must operate efficiently, honestly and fairly. This includes properly checking that any new staff they employ don’t have a history of negligence or dishonesty in providing financial services.
“This is an important initiative as part of our focus to ensure that the new financial services regime delivers good consumer protection outcomes,” Tanzer says.
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