{"id":27778,"date":"2014-10-20T11:58:13","date_gmt":"2014-10-20T00:58:13","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=27778"},"modified":"2014-10-21T12:00:20","modified_gmt":"2014-10-21T01:00:20","slug":"asic-concerned-about-sales-culture-in-advice","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2014\/10\/20\/asic-concerned-about-sales-culture-in-advice\/","title":{"rendered":"ASIC Concerned about Sales Culture in Advice"},"content":{"rendered":"

The culture of financial services businesses and the incentive structures they use are a continuing concern for the Australian Securities and Investments Commission.<\/span><\/p>\n

<\/p>\n

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

ASIC has highlighted the areas where it will focus its regulatory action over the coming 12 months, pointing to conflicted distribution models, and poor compliance systems within advice businesses as key concerns.<\/p>\n

The regulator has warned that it will continue its surveillance of financial advice firms to ensure they have policies, processes and procedures in place to comply with their legal obligations. The six largest financial advice institutions will be targeted for surveillance, and ASIC will also continue to review breach reporting for inappropriate conduct.<\/p>\n

Poor retail product design and disclosure, and misleading marketing and advertising are also a focus for the regulator. Specifically, ASIC said it would continue to target add-on insurance (such as consumer credit insurance) and the provision of advice about self-managed superannuation funds by unlicensed advisers.<\/p>\n

The information was released by ASIC as part of a new initiative to improve communication with the public about its enforcement work. The \u2018Strategic Outlook\u2019 report sets out the key risks ASIC sees to the markets it regulates, and how it will prioritise its tools of surveillance and enforcement to address these risks.<\/p>\n

Among the other risks identified by ASIC are globalisation, innovation-driven complexity, and the different expectations and uncertainty the public may have about what ASIC can achieve.<\/p>\n

…we will take action against entities, regardless of their size or reputation<\/h6>\n

ASIC Chairman, Greg Medcraft<\/strong>, said: \u201cBeing transparent about our role and priorities, the risks we see and how we will respond helps our stakeholders better understand what we achieve and why.<\/p>\n

\u201cImportantly, where we see non-compliance, we will act quickly and decisively through our \u2018detect, understand and respond\u2019 approach.”<\/p>\n

Mr Medcraft said ASIC used around 70% of its regulatory resources on surveillance and enforcement.<\/p>\n

\u201cASIC is a law enforcement agency and we will take action against entities, regardless of their size or reputation.<\/p>\n

\u201cAt the same time, those we regulate must act in the long-term interests of investors and financial consumers to ensure that trust and confidence in the Australian financial system remains strong.\u201d<\/p>\n

Next financial year, ASIC will build on the \u2018Strategic Outlook\u2019 initiative and publish a detailed \u2018Risk Outlook and Strategic Plan\u2019.<\/p>\n

Click here<\/a> to view a copy of the Outlook.<\/p>\n","protected":false},"excerpt":{"rendered":"

The culture of financial services businesses and the incentive structures they use are a continuing concern for the Australian Securities and Investments Commission.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,270],"tags":[],"class_list":["post-27778","post","type-post","status-publish","format-standard","category-compliance-regulation","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/27778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=27778"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/27778\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=27778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=27778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=27778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}