Balance needed on product intervention
The chairman of the Parliamentary Joint Committee overseeing the Australian Securities and Investments Commissiom (ASIC), South Australian Senator David Fawcett believes lessons from other sectors such as aviation can help improve regulation of the financial planning industry.
Addressing the national conference of the SMSF Associaiton, Fawcett pointed to overseas experience with respect to product intervention and whether a proactive or reactive approach would be appropriate.
However he said he was not certain that ASIC, as currently resourced, could undertake the type of proactive e intervention that some people might expect of it. Rather, he suggested a balance being reached based on greater disclosure around the nature of products being brought to market.
Fawcett said he believed that while raising the educational standards of financial planners was important, it needed to be a part of a broader suite of measures covering the quality of products and the ethics of the companies operating in the industry.
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.