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
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
