The ASIC report of a pilot study done by the University of New South Wales (UNSW) found that financial services and credit providers wanted to avoid the perceived effects of harsher sanctions, such as civil penalties.
The study found they also wanted to avoid the financial and time costs in discharging the terms of EUs to effect change in the business.
UNSW professor Dimity Kingsford-Smith said the clear finding of the study, which the researchers did not anticipate, is that a majority of interviewees reported their organisation being deterred by EUs with their competitors.
“The critical mechanisms of deterrence referred to by many interviewees were the costs of EUs and avoiding reputational damage and loss,” she said.
“Businesses were also motivated by EUs to avoid the intrusion of outsiders, such as supervising experts, in the operation of the business.”
ASIC said it will move on to a scoping study on potential options for further research into the impact of EUs and other regulatory actions, as well as discuss with other regulators the potential to work collaboratively on future research.
Da Boyz will look after ya
Institutions that have an ASIC investigation or are under EU need to disclose that to planners that are considering joining them. The best example of this is the Unethical bunch of &^%#$ at GUARDIAN ADVICE ( Suncorp Bank) who despite being under investigation continued to licence planners and then shut shop with Audits still continuing today. Buyer beware! Adviser have to disclose all conflicts and fees etc. but no not the too big to fail instos. Shame Shame
Whatever you say Academics, it means BUGGER ALL !!!!!!!!
Clearly in the REAL WORLD the Big Banks, AMP and Life Insurance companies were not scared at all of ASIC and it’s EU’s. Given the costs of the fines and EU compliance were so tiny, they simply accepted those tiny costs and impositions as part of doing business and part of frequently breaking the law.
[b]EU’s and ASIC have been a very small cost to the big institutions to continually break the law and still make 97% profit on the Illegal Activity !!!!!! [/b]
Well Heloooooo ! ASIC has found some friendly academics to support their current standards of using EUs to bring the banks to heel. Marvellous what opinions you can get if the cheque book is used and you write the terms of reference.
Are these experts associated with the previously unknown “behavioural experts ” consulted by ASIC to prepare the last sample Risk SOA ? That was the sample SOA with COMMISSION DISCLOSURE IN BOLD PRINT ON THE FIRST PAGE.