The Australian Securities and Investments Commission (ASIC) says it has been proved right in describing the financial advice industry as high risk.

ASIC Chairman Greg Medcraft says the sector’s problems are long-running.

“We have been saying – and proving – this for a long time,” he told a Senate Estimates Committee hearing last week.

“We have publicly highlighted our concerns about poor-quality advice and the problems created by conflicts of interest and poor culture. This has been in parliamentary inquiries held in the past, present and future.”

Mr Medcraft says ASIC has had the sector under surveillance since 1998, with shadow shopping exercises and other investigations.

“Lifting standards in the financial advice sector has been, and is being, comprehensively considered. We are firmly on the record in saying that standards in the industry need to be significantly lifted if community and regulator trust and confidence is to be restored.

“Now is the time for action by those who can make a change.”

Mr Medcraft says the regulator created a specialist wealth management project last year to focus on large advice entities – the four major banks, Macquarie and AMP.

It is currently scrutinising NAB.

“We have started our information-gathering from NAB Wealth using our formal legal powers, and the bank has been co-operative. I received a call from [NAB Group CEO] Andrew Thorburn... assuring ASIC we will get the co-operation we need from NAB.”

Mr Medcraft says ASIC has opened talks with the bank on reviewing remediation provided to financial advice clients.