ASIC takes hard line on advisers
The Australian Securities and Investments Commission (ASIC) will take a “deeper role” in instilling investment principles in financial advisers.
Deputy Chairman Jeremy Cooper told the Self-Managed Super Fund Professionals’ Association of Australia (SPAA) national conference that ASIC will be raising the bar for advisers to make it more difficult for them to give poor advice.
Mr Cooper says as investors shift to cash and capital guaranteed products in “this risk-averse stage of the cycle”, advisers will need to manage conflicts of interest, as cash products are not a high source of commission, and give appropriate advice.
“All advisers need to consider risk management about their advice to clients in a downturn,” he said. “Advisers also need to understand and question the products they are recommending to clients, rather than just distribute them.”
ASIC will also conduct a “shadow shopper” campaign on financial advice in the next financial year.
Deputy Chairman Jeremy Cooper told the Self-Managed Super Fund Professionals’ Association of Australia (SPAA) national conference that ASIC will be raising the bar for advisers to make it more difficult for them to give poor advice.
Mr Cooper says as investors shift to cash and capital guaranteed products in “this risk-averse stage of the cycle”, advisers will need to manage conflicts of interest, as cash products are not a high source of commission, and give appropriate advice.
“All advisers need to consider risk management about their advice to clients in a downturn,” he said. “Advisers also need to understand and question the products they are recommending to clients, rather than just distribute them.”
ASIC will also conduct a “shadow shopper” campaign on financial advice in the next financial year.