No appeal against licence removal: FOS
|
|
Financial services providers should not be allowed to appeal against the removal of their financial services licence in cases of bad advice, according to the investments, insurance and super ombudsman for the Financial Ombudsman Service, Alison Maynard.
Speaking at the public hearings of the Parliamentary Joint Committee Inquiry in Melbourne, Maynard said it was a “problem” that financial services providers were allowed to make an appeal to the Australian Securities and Investments Commission (ASIC) if the regulator threatened to remove their licence.
“What I see is ASIC doing a critical job [of investigating and taking away the licence], and then the financial services provider can make appeal … and get the licence back because ASIC can see the writing on the wall,” she said.
Financial services licences could be made harder to get in relation to implementing strategies to meet obligations of good advice, Maynard said.
Maynard also suggested that standards of education and training be raised to different levels depending on the products and type of advice provided by a financial planner.
There are obligations on licensees and “basic RG 146” requirements, but they could be beefed up, she said.
Recommended for you
The profession is up by almost 200 advisers for the new financial year, with August continuing the consistent weekly positive gains.
WT Financial has announced its second “Hubco” with a combined valuation of $7.8 million, while its first one has successfully incorporated and is now making its own acquisitions.
The Australian Wealth Advisors Group has entered into a joint venture with a Melbourne financial services firm to launch a wealth manager.
Remediation and litigation costs have led AMP to announce a reduced statutory net profit after tax of $98 million for the first half of 2025.
