The investigation found 150,000 customers received deficient disclosure on advice documents relating to MLC-branded financial products and those of NAB’s boutique fund stable.
The ASIC statement said that the defective disclosures were the result of “process error”.
Affected customers will now receive a “corrective disclosure” when they log into the MLC website for a three-month period.
“NAB has also agreed to write to the remainder of affected customers currently invested in related products, explicitly acknowledging the issue and providing corrective disclosure,” said a statement from ASIC.
Failure to disclose relevant relationships is a breach of the Corporations Act.
The investigation was part of ASIC’s wealth management project, looking into vertical integration in the six largest financial advice networks.
There is no independence…… ASIC is not the worst though it is close…. ATO takes that crown; AFSA and ASIC assist insolvency practioners and lawyers ( who then become judges) to steal wealth to pay tax to the commissioner of corruption , Chris Jordan
You guys sound like politicians. Bickering around petty issues for point scoring. Clients could not give a flying flute for these issues. They seek good financial outcomes and good service.
You are right about that John BUT the point is they should know who they are dealing with! The bias often used in SoAs to product flog can then be seen.
this is why independence matters right here
If you want proper disclosure make the banks, AMP and IOOF groups stopping using a myriad of dealer group brand names that are only there to confuse investors. Add on to this the company names used by advisers and investors have no hope of seeking non aligned advice.
This is getting more & more common. I.e ASIC needs to check out a few AMP advisers website. It’s play find the AMP logo and win a prize on most. oh there it is on page 3 in small letters.
I ‘ll tell you what’s massive- there is NO NAME ? So ASIC being nice to its mates, the big end of town. Is this covered by the FSC Life Code of Practice ? Oh, sorry, I forgot – there’s no sanctions in that “Code ” anyway. Its about as effective as Hitler’s paper guarantee to Chamberlain
It is irrelevant because it is covered by the new ‘Code of Practice’.
Gee, you’re a bit late on this one. The clients were notified 2 weeks ago. Disclosure was in FSG and not on the SOA. Stop the presses what a massive story this is.