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.

Related News:

“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.”




Related Content

Customers still satisfied with banks despite Royal Commission

Despite the failures of the big four banks uncovered through the Royal Commission into Misconduct in the Banking, Superannuation and Financial Service...Read more

Crypto prices driven by investors’ mood

The prices of cryptocurrencies are not driven by any economic factors but purely by investors’ mood, according to a study conducted by the Warwick B...Read more

BT planner went unpunished despite 'poor' advice

BT Financial Planning has acknowledged that it took no action against a senior financial planner notwithstanding his activities being the subject of c...Read more

Author

Comments

Add new comment