The Financial Services Council (FSC) supports giving the Australian Securities and Investments Commission (ASIC) more power to ban individuals, but not the power to ban products.

In its response to the Financial System Inquiry, the FSC supports an enhanced register of advisers and replacing the term “general advice” with “general information”.

It does not back replacing the term “personal advice” with “financial advice”.

The FSC says ASIC does not need additional product intervention powers, given it can already intervene when the law or licence conditions have been breached.

“The introduction of a new discretionary power would see ASIC stray into the field of mandating permissible products, a role that is properly the responsibility of the legislature.”

Under the FSC’s proposals, ASIC would have greater power to ban individuals from managing financial services organisations. It wants higher minimum education requirements for people providing personal advice to retail clients.

CEO Sally Loane says the FSC will make a submission to the Federal Government within six weeks, offering proposals for life insurance commissions following the Trowbridge report, which it commissioned along with the Association of Financial Advisers.

The FSC remains committed to presenting a solution to the Government, she says.