Penalties not harsh enough: ASIC
Penalties for financial planners who breach the law are not severe enough, the Australian Securities and Investments Commission (ASIC) believes.
Speaking at the Senate Economic Legislation Committee, ASIC chairman, Greg Medcraft, said current legislation failed to dissuade planners from breaching the law.
“The penalties are out of date,” he said. “We need to have a fresh look so that people who intentionally break the law are effectively punished,” he said.
“At the moment the law doesn’t provide for compensation comparable to the losses.
“Some jurisdictions have triple damages¨ you’ve got to have a system that deals with greed versus fear¨ we’re in finance, it’s all about money.”
Medcraft described the civil penalties for breaches of financial services legislation was “woefully inadequate” in Australia compared to other countries.
Recommended for you
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.
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.
Stakeholders in the professional year discussion underscore the challenges in the current pipeline and what is holding back licensees from taking on new candidates.
Colonial First State has partnered with JP Morgan Asset Management to make its inaugural private equity allocation, continuing the firm’s expansion into unlisted asset classes.
