The results of the Australian Securities and Investments Commission’s (ASIC) “shadow shopper” report might have greater implications for the financial services industry than the proposed Future of Financial Advice (FOFA) reforms, the Financial Planning Association has warned.

“The shadow shopper survey report could have a profound effect on the industry, FPA Chief Professional Officer Deen Sanders told insuranceNEWS.com.au.

“Whatever the outcome of the report, the regulator will have plenty of room for an influencing stance on the [financial services] industry.”

ASIC has said it will issue regulatory guides stemming from the FOFA bill to implement changes to the industry after legislation has passed.

insuranceNEWS.com.au understands if the bill was thrown out of Parliament for whatever reason, ASIC would still look at implementing some items through its regulatory guides process.

“Certainly ASIC has wide powers to issue regulatory guides, but they are saying they will delay some due to the FOFA legislation,” he said.

“But we have already seen examples of the FOFA legislation being incorporated in ASIC’s MoneySmart website such as talking about asset-based fees.”

Mr Sanders says he is not suggesting ASIC would act without the legislation in place, but he believes ASIC has been expanding its powers to look into topics such as research houses and financial services advertising.

“ASIC is increasing its scrutiny of the industry and its role as gatekeeper,” he said. “There is a lot ASIC can do with its existing powers, but we may see them implanting a lot more after the ‘shadow shopper’ report.”