ASIC targets misuse of ‘general advice’
Australian Financial Services license (AFSL) holders who misuse the provision of general advice to retail clients will find themselves being scrutinised by the Australian Securities and Investments Commission (ASIC).
The regulator has signalled its intention in its latest Enforcement Outcome Review report where it listed the misuse of general advice as an issue to which it would be paying particular attention over the next six months.
ASIC specifically cited “instances where AFS licensees claim to provide general advice to retail clients during the sale of financial products (and therefore do not need to comply with the best interests duty and related obligations), but are actually providing personal advice”.
Importantly, ASIC said it would also be paying particular attention to financial adviser compliance with the best interests duty and “their obligation to provide appropriate advice to clients.”
ASIC also signalled that it would be continuing the activity which gave rise to its so-called “fee for no service” report, stating that it would examining any failure by AFSLs to deliver ongoing advice services to financial advice customers who are paying fees to receive those services.
Recommended for you
Over half of wealth management clients in Asia-Pacific say they are looking for more advice in investment and financial planning services, according to EY, and may switch or add new providers to achieve this.
As artificial intelligence continues to reshape how the advice industry operates, Adviser Ratings unpacks which areas advisers are using the technology to improve the client experience.
Insignia Financial has appointed the former APAC head of a global asset manager to its board.
Financial advisers have been warned against advising clients to withdraw superannuation for medical or dental treatments as a new report highlights the long-term effect on balances at retirement.