Royal Commissioner, Kenneth Hayne has directly questioned whether more should be done to prevent recalcitrant advisers moving from licensee to licensee.
Hayne asked AMP Limited acting chief executive, Mike Wilkins what could be done to deal with what he termed “the rolling bad apple”.
Wilkins said that AMP Limited had put the necessary protocols in place to deal with such advisers and that it had been an early signatory of the Australian Bankers’ Association (ABA) protocols relating to advisers moving between companies.
Asked by Hayne whether it was sufficient, Wilkins said it needed to be better monitored and with more obvious and quicker consequences.
However, when asked by Hayne whether there was justification for individual licensing of planners, he suggested this might be a step too far.
“It is probably a step too far and my view is that would be overly bureaucratic,” he said.
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Glorified witch hunt. Means nil unless they also investigate ISA of which they won't, so it is all politicised bs.
Perfect summary of what is going on! Lots of stones that were not turned up with the biggest one left untouched being the ISA. They are not stupid and they must know that if they went there all hell would break loose. The ISA will live to fight at least another lifetime..
Well the institutions don't want individual licensing for a very clear reason - loss of control. They still hope that after all the fines and remediations are paid, they can go back to subtle and not so subtle influencing of advisers through dealer structures. IOOF has already offered its advisers shares! In the middle of a RC into conflict.
It's amazing how many people think that banks offloading their wealth divisions is solving the vertical integration problem. It's just transferring ownership of the problem, not solving it. In many ways vertical integration will be worse in the hands of an IOOF because consumers are easily duped into thinking their stable of brands like OnePath/Shadforths/RI/Bridges etc are "independent".
One way for Wilkins to have stopped the "rolling bad apples" would have been for AMP's auditors to have withdrawn proper authorities from the single-practice advisers where there was widespread malpractice. This was recommended by AMP's auditors. But no, it was a numbers game so each of the advisers had their audit score upgraded from "out" to "monitor". Where is ASIC's investigation of this ?
The hypocrisy of AMP and the idiocy of the RC to ask these cheats meaningful questions shows the big end has more power than practitioners. Where is our voice ?
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