Should ASIC have oversight on financial advice label?
The corporate regulator does not believe much difference will be made if it educated media outlets on reports that call people financial advisers when they are not.
During a Parliamentary hearing, Nationals Senator Susan McDonald pointed to a story by the Australian Broadcasting Corporation (ABC) that incorrectly labelled a man as a financial adviser. McDonald asked what oversight ASIC had to protect the industry given the strict regime advisers were held under.
Australian Securities and Investments Commission (ASIC) chief operating officer, Warren Day, said there was no limit on people calling others financial advisers and that a lot of people called themselves financial advisers who were unlicensed.
“That’s a matter for the ABC… and in relation to the way the ABC refers to a particular person, I don’t know that there’s anything we could add to that,” Day said.
“We’re not saying we won’t look at that and not take action against someone who is providing unlicensed financial advice.
“What I'm saying is how the ABC… refers to a person is not something that I think that we could necessarily do anything other than educate what the rules are to the ABC and I don't think that would make any difference.”
McDonald noted that it could be a starting point to communicate the story was incorrect and that if ASIC did not provide advice to the ABC about financial advisers she was not sure who else would.
Recommended for you
It can be extremely hard to realise the gains from financial advice M&A, according to Peloton Partners’ Rob Jones, and more could be gained from firms looking inward at their own practice.
With platforms reporting their quarterly results, there is a clear divide in the adviser markets they are targeting, according to platform specialist Recep Peker, and which would be right for your clients.
The Federal Court has imposed a $10 million penalty on Macquarie Bank for failing to prevent and control unauthorised fee transactions by third parties including financial advisers.
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.
