Last week, government announced plans to reform the Corporations Act to strengthen criminal and civil penalties for corporate misconduct.
In a statement, FSC chief executive Sally Loane said tougher penalties were important to protect customers, and that the council supports the decision.
“There is no place for criminality in the financial services industry and wrongdoing should be met with the full force of the law,” she said.
“It is entirely appropriate that penalties for civil and criminal misconduct are as strong as possible.”
Ms Loane added that increasing penalties for poor conduct would help rebuild trust in the financial services industry.
“Consumers must have confidence that the individuals and organisations they entrust with their savings will act in the right way. Both effective enforcement of the law as well as severe punishments for wrongdoing are central to promoting better trust and confidence.”
The statement comes despite the FSC previously mounting strong opposition to the notion of a royal commission into the financial services industry.
Speaking at a Pritchitt Partners event in Melbourne in July 2017, Ms Loane said a royal commission would prevent self-regulation efforts.
“We are uniquely placed to take up the mantle of consumer reform so that the government can get on with its job of governing,” Ms Loane said.
“Proving as an industry we can regulate ourselves also strengthens consumer trust in the sector. In this light, we are concerned about a proposal that could act as a handbrake on self-regulation.”
Ms Loane said at the time she was concerned that previous inquiries had already cost the industry $3 billion.
The FSC needs to appear before the RC
Priceless! The dodgy FSC lobby group who have been conning government and the industry. How about a check by the royal commission over the cartel and corrupt behaviors of the FSC over the LIF, opt out, etc, etc. The FSC should be the first to be fined.
Not ever having been a Banker, nor a Planner, nor a Compliance Manager, with no FP qualifications nor holding a Business or Law degree. Fantastic! Clearly an expert.
the irony of the advice business every existing creature makes a decision except the planner or people
HAHAHAH how rich is this. The FSC comes out and says penalities should be higher in future following them having aired their dirty laundry. They must genuinely all be laughing in a room full of client’s money as they publish this stuff.
Well hello, look who has popped up – finally. Too little, too late FSC. Predictably, the FSC is trying to recover some seriously lost reputational ground by the banks and their insurers. Ah well, your promotion of LIF, and the consequent reduction of costs of selling insurance for product manufacturers, has benefited your bank members who have already sold, OR will sell soon. WELL DONE!!!