ASIC to start second phase of advice practice review
The Australian Securities and Investments Commission (ASIC) has announced it will contact 30 Australian financial services licensees to form part of the commission’s review of financial advice industry practice.
ASIC commissioner Peter Kell said: ‘One of ASIC’s priorities is ensuring investors and financial consumers are confident and informed. The three elements to achieving this are educating investors, holding gatekeepers to account and understanding consumer behaviour. This review provides ASIC with important input into all these elements so that it can deliver positive outcomes for consumers.
‘The review will also inform the financial advisory sector about current industry trends and ASIC’s compliance expectations. Many of the top 20 advisory firms that participated in the first phase of the review reported finding the exercise beneficial and helpful for improving their practices,’ said Commissioner Kell.
The review will take the form of a questionnaire that will include specific questions on areas like licensee business models, training of representatives, and product and strategic advice.
The questionnaire will cover:
- Licensee business model;
- Training of representatives;
- Monitoring & supervision of representatives;
- Product & strategic advice; and
- Complaints handling and compensation arrangements