April 3, 2018
The majority of advisers have indicated they don’t support the call for ASIC to conduct random audits of Australian risk advice businesses.
The call to audit 20 per cent of life insurance advisers over a three-year period was made as part of the final recommendations made by the Parliamentary Joint Committee charged with investigating Australia’s life insurance sector (see: PJC Recommends Compliance Audits For Risk Advisers).
While 63 per cent have rejected this call, around a third of those taking our poll (31 per cent) have indicated their support, while 6 per cent aren’t sure.
Given the general feedback we’ve received on this poll and elsewhere, our sense is that most risk-focused advisers would be okay to be subjected to a random ASIC audit because they’re already subject to regular audits from their licensee. We’re thinking that a proportion of those voting against such a move have taken this position mostly due to regulatory and other industry events in recent years in which they believe advisers have been unfairly targeted.
What’s your view? If you don’t support the call for random ASIC audits of risk advice businesses, what’s your main reason for taking this position? Equally, if you’re one of the healthy minority who support the random audit call, what are your reasons?
Our poll remains open for another week if you haven’t yet had your say…