In its submission to Treasury responding to the FSI final report, the lobby group rejected the proposal of a product design and distribution obligation, arguing this new conduct requirement is “unnecessary”.
“[The proposal is unwarranted] given existing multi-layered obligations on financial services providers; implementation risks associated with the proposed obligation; the significant compliance burden it would impose; and the negative impact such an obligation would have on consumer autonomy and choice,” the submission stated.
Equally, it rejected the FSI recommendation to arm ASIC with product intervention powers, which it says could see the regulator “stray into the field of mandating permissible products”.
The FSC also endorsed higher education standards for financial advisers and an enhanced ASIC register, including disclosure of licensee ownership.
Love the way they call themselves the Financial Services “Council” as if they were some sort of peak industry body rather than a mouthpiece, lobby group and conduit for political donations of the big institutions.
So advisers have to operate under a Best Interest’s Duty but the product providers (whose product failures have caused so much damage to the reputation of the advice profession) don’t want anything similar to apply to them!
The double-standards operating in the financial services industry are beyond a joke.
ISA’s think Opt-In and Fee Disclosure Statements are critical for consumer protection – but not for their members.
Banks are sheeting home the blame for poor advice onto their (former) advisers without so much as a glance at their business models that lead to such outcomes.
And now the product manufacturers want to avoid anything resembling tighter controls over their conduct and responsibility for their actions.
The FSC is nothing but a self-serving body prepared to throw advisers under a bus every time a criticism of their ‘members’ is raised.
This is a joke. why is it all other areas of manufacture need to meet quality tests and reviews and the financial product providers dont. Oh maybe it has something to do with the amount of political donations.