David Murray says his proposal to slap new obligations on product providers will result in conflicts of interest in vertically integrated financial advice becoming redundant.
Speaking at Committee for Economic Development of Australia (CEDA) luncheon in Sydney yesterday, Mr Murray acknowledged the “heat” around the issue of institutional ownership of wealth management firms, but rejected the idea that the FSI did not tackle the issue.
Reflecting on his proposal to require financial product manufacturers and distributors to abide by new consumer-focused obligations, Mr Murray said this will solve the problem raised by critics of vertical integration.
“What we’re saying about [the financial] system is that the product manufacturer needs to consider what information is made available, whether advice is needed or not,” Mr Murray said.
“The distributor has to take that on board.
“Once that system is in place, vertical integration doesn’t matter anymore. The same obligations are on everybody whether they’re vertically integrated or not.”
The inquiry chair also said that he intends ASIC to use product intervention powers “sparingly”.
SUBSCRIBE TO THE IFA DAILY BULLETIN
24 Nov 2017Increased ASIC licensing fees revealedBy Tim Stewart
24 Nov 2017FPA announces 2017 award winnersBy Staff Reporter
23 Nov 2017Fintech progress can't be fought: FPABy Killian Plastow
24 Nov 2017‘Winter is coming’ for PI insurance marketBy Aleks Vickovich
23 Nov 2017NowInfinity appoints new national sales directorBy Staff Reporter
23 Nov 2017Centrepoint creates new 'high performer' networkBy Jessica Yun
- view all