The financial advice industry is part way through transformation from an industry dedicated to the sale of financial products to a profession concerned with the provision of financial advice. The interests of Australians who seek financial advice require that that Read More …
Category: Financial Advice
4.2 A new approach to discipline
As I said at the start of this section of the chapter, a coherent system of professional discipline must be established for financial advisers. The system should have the following key features. First, each financial adviser should be individually registered. Read More …
4.1 Existing arrangements
4.1.1 AFSL holders As mentioned earlier in this chapter, a key principle in CLERP 6 was to regulate intermediaries (including financial advisers) at firm level rather than at the individual level, in part to allow ASIC to target its resources Read More …
Introduction
The third matter that emerged in connection with the provision of financial advice related to the disciplinary system for financial advisers. That system now consists of a number of bodies, each directed at regulating different, though related, norms of behaviour, Read More …
4 Professional discipline
3.3 Reducing or eliminating the conflict
As I said in the Interim Report,[1] and have repeated above, consideration of conflicts between duty and interest begins from two simple observations: So long as advisers stand to benefit financially from clients acting on the advice that is given, Read More …
3.2 Can conflicts be managed better?
Accepting, for the moment, the premise of the FoFA reforms – that conflicts of duty and interest exist, must be recognised and should be ‘managed’ – the question that presents itself is: is there more that could be done to Read More …
3.1 Conflicts of duty and interest
As I said in the Interim Report,[1] consideration of conflicts of interest, or more accurately, conflicts between duty and interest, begins from two simple points: So long as advisers stand to benefit financially from clients acting on the advice that Read More …
Introduction
The second matter that emerged in connection with the provision of financial advice is that clients have often been given poor advice that has left them worse off than they would have been if proper advice had been given. I Read More …