A statement by ASIC noted the regulator has negotiated a “number of major review and remediation programs by financial advice firms” in recent years.
The most notable is the Commonwealth Bank’s Open Advice Review program, currently in operation, as well as a similar program at Macquarie Private Wealth.
ASIC deputy chairman Peter Kell said licensees that provide personal advice to retail clients should have “robust review and remediation programs in place”.
“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,” Mr Kell said.
“Consumers will have greater trust if they can be confident that any remediation program is consistent and transparent,” he said.
The new regulatory guide will build on ASIC’s “recent experience overseeing review and remediation programs” as well as Regulatory Guide 165 Licensing: Internal and external dispute resolution.
ASIC said it would consult with stakeholders during the development of the new regulatory guide, including with “consumer groups, external dispute resolution (ombudsman) schemes, compliance advisers and industry participants”.
The Regulator still doesn’t get it.
Licensees should review all advice provided by their Representatives to retail clients, prior to that advice being given to them.
ASIC should ensure that is what is required in the industry and not a patch up remedy after the horse has bolted.
Mr Kell you could add the words “Timely, transparent and truly independent” to your criteria for these schemes.
CBA has only managed to pay 3 victims out of 5,000 in 9 months.
CBA even has the effrontery to dictate to its’ victims who their “independent” customer advocates will be.
Once again this travesty is being perpetrated under ASIC’s nose.