Expect ASIC to be more rigorous
The Australian Securities and Investments Commission (ASIC) is expected to impose a more rigorous regime around its oversight of enforceable undertakings in the wake of yesterday’s Senate Committee findings with respect to its handling of Commonwealth Financial Planning.
ASIC chairman, Greg Medcraft signalled the regulator’s intentions in a statement issued immediately after the tabling of the Senate Committee report saying the organisation had already put in place changes including “the way we ensure enforceable undertakings deliver good results for consumers”.
At the same time, the ASIC chairman confirmed that the license conditions being imposed on Commonwealth Financial Planning (CommFP) will entail requirements around the compensation of customers.
He said the conditions would “ensure equal treatment of customers and will result in over 4000 customers having the chance to reopen the question of compensation and be provided with $5000 to obtain independent advice to assist them consider their options”.
Medcraft also pointed to ASIC having already acted on a number of issues raised during the Senate inquiry and that some of the committee’s recommendations such as registration of financial advisers, raising adviser standards, higher penalties and a user pays funding model wereissues ASIC had suggested in its submission to the Financial System Inquiry.
On the central question of its handling of CommFP, Medcraft said ASIC had already acknowledged that it could have acted more appropriately in three ways:
- ASIC should have acted faster to remedy the misconduct at CFPL when it became apparent the firm was not dealing adequately with its own poor advice problems.
- ASIC’s action against CFPL should have been more transparent.
- ASIC should have communicated more effectively with the whistleblowers who contacted us concerning poor practices at CFPL.
Money Management’s coverage of the Senate Committee report into the performance of ASIC:
Senate Committee recommends royal commission
Bushby issues dissenting report
CBA refutes senator's deflection claims
ASIC should face regular reviews
Senate report calls for adviser banning powers and increased penalties
Report calls for higher education standards and enshrinement
Recommended for you
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
