{"id":26635,"date":"2014-06-30T09:33:40","date_gmt":"2014-06-29T23:33:40","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=26635"},"modified":"2014-07-15T20:14:57","modified_gmt":"2014-07-15T10:14:57","slug":"cfpl-scandal-a-lesson-for-entire-industry","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2014\/06\/30\/cfpl-scandal-a-lesson-for-entire-industry\/","title":{"rendered":"CFPL Scandal a Lesson for Entire Industry"},"content":{"rendered":"

The Commonwealth Financial Planning (CFPL) scandal which led to a Senate inquiry into the actions of the licensee and the Australian Securities and Investments Commission (ASIC) should stand as a lesson for the entire financial services sector, according to Senator Mark Bishop<\/strong>.<\/span><\/p>\n

Senator Bishop is the chair of the Senate Economics References Committee (SERC), which conducted a review of the performance of ASIC in relation to the actions of CFPL between 2006 and 2010. The SERC handed down its report last week, calling for a Royal Commission to further examine the matter.<\/p>\n

…the evidence the committee has received is so shocking…<\/h6>\n

\u201cThis is not a recommendation that the committee has made lightly, but the evidence the committee has received is so shocking and the credibility of both ASIC and the CBA is so compromised that a Royal Commission really is warranted,\u201d said Senator Bishop.<\/p>\n

\u201cThe CFPL scandal needs to stand as a lesson for the entire financial services sector. Firms need to know that they cannot turn a blind eye to rogue employees who do whatever it takes to make profits at the expense of vulnerable investors.\u201d<\/p>\n

The report delivered 61 recommendations, generally aimed at enabling ASIC to fulfil its responsibilities and obligations more effectively, and to promote greater confidence in the regulator. To read a summary of the SERC report, click here<\/a>.<\/p>\n

\"ASIC<\/a>
ASIC Chairman, Greg Medcraft<\/figcaption><\/figure>\n

Responding to the report, ASIC Chairman, Greg Medcraft<\/strong>, said the regulator would not comment on the policy recommendations, which are directed to the Government, but had taken the inquiry very seriously.<\/p>\n

However, Mr Medcraft noted that some of the recommendations relating to ASIC\u2019s procedures had already been addressed, including:<\/p>\n