FSC supports tougher misconduct penalties
The Financial Services Council (FSC) has come out in support of the Government’s announcement last Friday that it will toughen up corporate misconduct penalties following shocking revelations before the Royal Commission as to the extent of misconduct in the financial advice industry.
The strengthened civil and criminal penalties would allow, amongst other things, individual wrongdoers to be imprisoned for 10 years and corporations fined 10 per cent of annual turnover.
FSC chief executive, Sally Loane, said that it was “entirely appropriate” that the penalties for corporate misconduct be as strong as possible to protect consumers.
“There is no place for criminality in the financial services industry and wrongdoing should be met with the full force of the law.
“Consumers must have confidence that the individuals and organisations they entrust with their savings will act in the right way. Both effective enforcement of the law as well as severe punishments for wrongdoing are central to promoting better trust and confidence.”
AUTHOR
Hannah Wootton
Recommended for you
AZ NGA has entered into a strategic partnership with national advice firm MiQ Private Wealth, as a way to provide a succession solution, as well as career development opportunities for staff.
While the advice profession struggles under growing operating costs, Adviser Ratings has found more than half of practices – some 58 per cent – that generate less than $250,000 in revenue report no profit at all.
The Federal Court has ordered the freezing of assets and the appointment of receivers to two entities linked to Australian Fiduciaries, ASIC’s latest move in an ongoing investigation into the company’s managed investment schemes.
Off the back of the August adviser exam results, the profession has seen 17 new entrants hit the Financial Adviser Register (FAR) this week, helping numbers return to positive territory.
