ASIC to develop new regulatory guide for AFS licensees

by Julia Corderoy07 May 2015
ASIC has announced it will develop a regulatory guide on review and remediation programs for AFS licensees to ensure financial advisers are properly protecting clients.

Over the last few years, ASIC has negotiated a number of major review and remediation programs by financial advice firms. These programs have been large scale exercises to review personal financial advice provided to retail clients and to compensate those clients where loss has been suffered as a result of non-compliant advice, fraud or other breaches of the law.

“Licensees that provide personal advice to retail clients should have robust review programs in place to protect their clients,” ASIC deputy chairman, Peter Kell said.

“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. Consumers will have greater trust if they can be confident that any remediation program is consistent and transparent.”

In developing the regulatory guidance, ASIC will consult with stakeholders including consumer groups, external dispute resolution schemes, compliance advisers and industry participants.