Where possible, conflicts of interest and conflicts between duty and interest should be removed. There must be recognition that conflicts of interest and conflicts between duty and interest should be eliminated rather than ‘managed’. Several recommendations deal with conflicts of Read More …
Tag: best interests duty
Simplifying the law so that its intent is met
A general recommendation is that, as far as possible, exceptions and qualifications to generally applicable norms of conduct in legislation governing financial services entities should be eliminated (Recommendation 7.3). In this way, the first, and essential, step to take is Read More …
Consumer lending: Intermediated home lending
Recommendation 1.2 – Best interests duty The law should be amended to provide that, when acting in connection with home lending, mortgage brokers must act in the best interests of the intending borrower. The obligation should be a civil penalty Read More …
15.2 APRA
APRA is Australia’s prudential regulator, with responsibility for banking, insurance and superannuation.[1] Among other things, it regulates RSE licensees and has the general administration of important parts of the SIS Act.[2] Helen Rowell, Deputy Chairman of APRA, told that Commission Read More …
4.4 Changing the pricing for the IPS Fund
In 2018, IIML decided to make some pricing changes as part of ‘Project Evolve’, a broader strategy to simplify IIML’s administration systems.[1] According to an internal analysis presented to IIML’s leadership group, 29,263 members of IOOF Employer Super (IES) would Read More …
1.3 What the case study showed
1.3.1Conduct in respect of PSFs As noted above, I make no findings about the matters alleged by ASIC in its proceedings against NAB in relation to PSFs. I do, however, wish to say something about the actions of those within Read More …
2.2 Best interests of members and conflicts of interest
The best interests covenant is simply stated. Yet the conduct examined by the Commission, and submissions made by trustees, suggested that some trustees had difficulty understanding when and how the covenant applied. For example, one group of trustees said that 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 …
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 …