Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

ASIC examining wholesale/retail client definitions

ASIC/retail-clients/wholesale/retail/

11 March 2020
| By Mike |
image
image image
expand image

The Australian Securities and Investments Commission (ASIC) has confirmed it is continuing to examine the misclassification of wholesale and retail clients.

ASIC chair, James Shipton has confirmed to a Parliamentary committee that the regulator is looking at the issue but stopped short of suggesting that there was systemic misclassification of wholesale and retail clients.

However, he said that at the very least ASIC was concerned about potential misclassifications in circumstances where the ‘wholesale investor’ definition was a broad one.

“There are many different facets to it,” Shipton said. “There may be misclassification in a general sense, which may be different from a legal sense, because technically it may fall within the definition of a 'wholesale client'.”

“What we're looking out for, I sense is probably best expressed as an overly technical application of a person as a wholesale client that may not be in the greater scheme of things in their best interest. This is something we're actively monitoring,” the ASIC chair said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

3 weeks 1 day ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

4 weeks 1 day ago

So we are now underwriting criminal scams?...

7 months ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks 3 days ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

3 weeks 6 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

1 week 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND