ASIC to issue guidance on advice remediation
The corporate regulator has announced it will develop a regulatory guide for review and remediation programs conducted by licensees that provide financial advice.
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”.
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