FSC welcomes new laws to protect consumers
The Financial Services Council (FSC) has welcomed the passage of new legislation, the Design and Distribution Obligation (DDOs) and Product Intervention Powers (PIP) Bill 2019, which aims to provide consumers with more protection from poor financial products.
Under the new legislation, financial services providers would be required by law to take a more customer focused approach when offering their products.
FSC’s chief executive, Sally Loane, said that the FSC looked forward to working with the Australian Securities and Investments Commission (ASIC) while the regulator was building a clear framework for how the new regime would operate.
“In the limited circumstances where there is an inappropriate product sold, ASIC will now be able to intervene to protect consumers,” she said.
“While this is an important power for ASIC, the FSC believes the greatest consumer benefit comes from quality advice and products appropriate for the goals and needs of individuals.”
Recommended for you
As the first quarter of 2024 comes to a close, Money Management looks back on the corporate regulator’s bans and AFSL cancellations in the financial advice sector.
Insignia Financial is holding ‘relatively steady’ onto its rank as Australia’s second-largest financial advice licensee after the Godfrey Pembroke exit but Count is hot on its heels.
Liberal senator Slade Brockman has said the government needs to have a “cold hard look” at the level of regulation in the financial advice space and the costs of running a business.
FAAA chief executive, Sarah Abood, has warned changes in the first tranche of the QAR legislation around advice fees documentation could create more work for advisers rather than less.