In its latest enforcement update, ASIC said it would place “particular attention” on supervision by licensees to “ensure that the services covered by the licence are provided efficiently, honestly and fairly”.
Conflicted remuneration and fees-for-no-service will also be focuses for the regulator, the update said.
Data included in the update also showed that between January and June 2018, ASIC used administrative methods to remedy 58 per cent of financial services misconduct cases brought to its attention.
The second most common means of remedying misconduct through this period were civil penalties (19 per cent), followed by enforceable undertakings (10 per cent).
Criminal penalties were used in only 2 per cent of ASIC’s enforcement during this period.
All remuneration is conflicted, including hourly rate fee for service. There is a conflict between providing as much as the client needs for a reasonable price, vs abusing your position of knowledge and trust to provide unnecessary service and/or charge excessively. It is the same in every profession. If ASIC is focusing on conflicted remuneration it should take a close look at any fee for service adviser (or accountant) providing SMSFs. Most SMSFs are overly expensive and completely unnecessary.
Pretty sure ASIC is already doing that (shadow shopping)
ASIC focuses on “conflicted remuneration”. Define?
Does it include, for example, FUA on preferred platforms, where the licensee gets remunerated on a percentage based licensee fee?
Never looked at in that light. % based licensee fees are potentially conflicted!!!
Start with the beacon licenses they have some real issues – insolvent trading