The House of Representatives standing committee on economics said in the first report on its review of the big four banks that, when an AFSL holder becomes aware that one of its financial advisers has breached their legal obligations, that AFSL holder be required to contact each of that adviser’s clients to advise them of the breach.
The committee said the financial advice industry is not being sufficiently accountable to its own customers and to the general public.
“The committee was disappointed to learn that this is not standard industry practice,” the report said.
“When a financial adviser is found guilty of misconduct, the committee believes that the clients of that adviser should be notified as soon as possible.”
NAB argued in the report that in cases where the provision of poor advice was not systemic that notifying all clients may create unnecessary stress.
The committee said the argument was “not compelling”.
“The financial advice industry needs to demonstrate that it has heard community concerns,” the report said.
“Customers have the right to know if they have been advised by someone that has been found guilty of misconduct.”
Another distraction for dopes in the Parliament.
How about the public at large being advised of incompetent doctors and why can solicitors who have abused trust funds continue to practice?
There appears to be one set of rules of the popular whipping boy – the advisor & another for other sections of society.
FOUND guilty by who though? ASIC or the banks? it should be ASIC not the banks, as they have their own agenda. I have seen banks remove people for misconduct without a shred of proof, terminating advisors contracts due to performance or other unrelated non-misconduct personality clashes…