The Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) legislation introduces a design and distribution obligations regime for financial services firms as well as a product intervention power for ASIC.
ASIC’s intervention powers take effect immediately, allowing it to intervene whenever there is a risk of significant damage to the consumer.
The design and distribution obligations regime will be phased in over two years. Under the regime, financial product issuers and distributors will be under ASIC’s microscope, ensuring that the design, marketing and distribution of financial and credit products meet consumer needs.
ASIC chair James Shipton said the reforms were a critical factor in the development of a financial services industry in which consumers could feel confident placing their trust.
“These new powers will enable ASIC to take broader, more proactive action to improve standards and achieve fairer consumer outcomes in the financial services sector. This will be a significant boost for ASIC in achieving its vision of a fair, strong and efficient financial system for all Australians,” Mr Shipton said.
“This will also provide invaluable assistance to ASIC as we all seek to rebuild the community’s trust in our banking and broader wealth management industries. And we note the overwhelming level of support this attracted from across the Parliament.”
I’m not going to do any more financial planning studies, Instead Im going to go back to uni and do a law degree then get on the gravy train and get a job with ASIC. They must have so much employment opportunity. This mob is getting fatter than ben hur with their snouts in every trough
[quote=Reality]So…. They will intervene and shutdown AMP?[/quote][quote=Reality]So…. They will intervene and shutdown AMP?[/quote]
Most planners that work for AMP are self employed no different to the rest of the planners out in the market… I’m an AMP planner self employed we can recommend whoever we want I have adviser codes with all the major companies and we even give industry fund advice fee for service so settle down mate
I remember the Estate Mortgage debacle, having interviewed Carl Whathisface in 1985 and worked out why it would fail, and now I wonder if products such as those run by IPO aren’t heading in a similar direction. Few products are without small faults, but some are disasters waiting to happen. ASIC should be able to make those profiting from poorly designed and represented products show cause before they fail, rather than chase up the directors after they fail. But we need to be prepared that some will slip past and others may get tripped up despite not being problematic…
So…. They will intervene and shutdown AMP?
Great news!! Now it may be harder for certain global banks operating locally to sell risky structured products as ‘enhanced term deposits’ under general advice.
Ahhh great! Hedware, assume that under ‘ensuring that the design, marketing and distribution’ this means ISA super will have to either adhere to rules that make sense or else eff off – correct??
Now they can shut down Aus Super for their poor insurance, to the detriment of 2 million people…. haha as if that would happen!
fantastic news and overdue.
Let us hope this means that mortgage brokers won’t be able to sell Personal Insurance products under the guise of ‘general advice’ simply to get more commissions.