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Consumers warned over adviser register’s flaws

ASIC’s Financial Advisers Register is still missing crucial information about advisers, including professional indemnity arrangements and FOS claims, a national lobby group has warned consumers.

National Seniors has urged consumers to “exercise caution” following the federal government’s announcement that new details have been added to the public register yesterday.

“We welcome that an effort is being made to improve transparency and accountability in the financial advice market, but there are still holes in the system,’’ National Seniors CEO Michael O’Neill said.

“Missing crucial information includes complaints and claims against advisers; the details of an adviser’s professional indemnity insurance; and payment arrangements including a percentage breakdown indicating how an adviser was remunerated last financial year.”

The lobby group has called for the inclusion of commission payment disclosures and whether an adviser has any financial link to a product they recommend.

In addition, Mr O’Neill criticised the register for only covering a period of five years, meaning advisers associated with high profile cases such as Storm and Opes Prime will not be identified.