An industry association has called for ASIC to apply the same scrutiny to bank managers as it does to brokers.
According to a Fairfax report, ASIC has pushed to be given broader powers to oversee bank staff in order to better protect financial planning clients. The Fairfax report claimed that ASIC will argue for the expanded powers in its second round submission to the financial system inquiry.
In light of the revelations, FBAA
president Peter White
has said the regulator should also turn its eye to bank branch managers and their lending practices. White said that the scrutiny applied to branch managers should be the same as that applied to brokers.
"There needs to be a level playing field, because at this stage it seems like only brokers are being targeted by ASIC," White said.
White said FBAA
members had expressed concern about the tactics used by bank branch managers.
“It makes sense that if the regulator is already looking at the operations of branch managers in terms of financial planning activities, this be extended to include credit and lending activities," he said.