ASIC wants tougher line on advice failures
The Australian Securities and Investments Commission (ASIC) will seek to ban management figures in financial planning firms that are involved in advice failures.
ASIC deputy chair Peter Kell said the regulator would seek an extension to its powers to ban those who do not provide advice but are integral to its provision and any failures related to that advice.
“We can ban advisers but find that those who manage advice move onto new businesses and new roles,” Kell said, speaking at the Money Management/Super Review Future of Financial Service Regulation breakfast in Sydney this morning.
“If they are not involved with advice, we cannot ban them, even if they are involved in serious failings related to advice.
“For ASIC it would be better if we could ban those in management as well, where there have been specific failures.”
Kell said that ASIC was aware of a number of cases where management figures involved with failures had been able to take on new roles, while advisers had either been removed from the sector or placed under disciplinary action.
Kell said ASIC had made the recommendation to the Senate Inquiry into the performance of ASIC and would do so again to the Financial Systems Inquiry.
AUTHOR
Jason Spits
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.
