The Australian Securities and Investments Commission (ASIC) is developing a regulatory guide on review and remediation programs in the financial advice industry.

The guide will be based on the experience of programs already implemented by financial services licensees.

These programs, “negotiated” by ASIC in conjunction with financial advice companies “over the past few years”, have been large-scale exercises to review personal financial advice provided to retail clients and compensate those that have suffered losses as a result of non-compliant advice, fraud or other breaches.

Some of the review and mediation programs the regulator will draw from have resulted from licensees identifying deficient advice and initiating smaller, more targeted responses.

ASIC Deputy Chairman Peter Kell says licensees providing personal advice to retail clients should have “robust” frameworks to protect clients.

“We want to ensure that if a financial advice licensee needs to provide remediation, they do so in a way that is fair, honest and efficient,” he said. “Consumers will have greater trust if they can be confident that any remediation program is consistent and transparent.”

In developing the guide ASIC will consult with stakeholders such as consumer groups, external dispute resolution schemes, compliance advisers and industry participants.