Yesterday, Minister for Revenue and Financial Services Kelly O’Dwyer announced that the government is seeking feedback on two key proposals from the Financial System Inquiry.
The first proposal is around the introduction of design and distribution obligations on issuers and distributors, according to a statement.
The second one is a product intervention power for ASIC, that would enable the regulator to intervene where a product is identified as “creating a risk of significant consumer detriment”.
This will include allowing ASIC to impose additional disclosure obligations, mandate warning statements, require amendments to advertising documents, as well as restrict and ban the distribution of products.
Meanwhile, the design and distribution obligation measure is intended to make product issuers and distributors more accountable for the products they sell. This will include providers of insurance products, investment products, margin loans and derivatives.
“These measures will improve outcomes for consumers and make ASIC a more proactive regulator,” Ms O’Dwyer said.
“Implementation of these measures is a further example of the Turnbull government taking real action to protect consumers of financial products and services.
“The consultation period on the paper will be three months, recognising the complexity of the measures and the importance of getting the balance right as well as taking into account the holiday season.”
The due date for submissions is 15 March 2017.
Kelly O’Dwyer has never advised a client in her life and is hell bent on destroying the industry. To put it bluntly, she has no idea what she is talking about.
So this should include direct insurance products which are overpriced junk insurance, high exclusions, little underwriting and more chance of claims being denied.
But wait, this is the route Kelly O’Dwyer is forcing customers down in the future with the LIF !!!
There are already requirements for the adviser to provide a soaa and to explain the significant risks.There is ample measures in place to protect the consumer. No need to look any further than the FOS looking after the CBA and the likes by not applying the strict requirements in which the CBA /subsidiary adviser have clearly breached but are only ignored by the FOS. There is no need to look any further other than the decisions given to the CBA advisers to that of the IFA by the FOS. Time for a royal commission into the FOS and the CBA not the whole sector.
Kelly has never advised a client in her life. Her proposals are always horrible and she is destroying the industry.