ASIC has vowed to tackle poor culture in the financial services industry, saying that a culture of poor conduct is a key driver in widespread mistrust in the industry.
In its half-yearly enforcement report, the regulator claims there needs to be a “fundamental shift” in the culture of the financial services industry, from “poor advice” and “mis-selling” to one that focuses on achieving and rewarding good outcomes for consumers.
“ASIC is committed to holding those who intentionally break the law to account so that trust and confidence in our financial services industry and markets is strong,” ASIC commissioner Greg Tanzer said.
“Poor culture is a key driver of poor conduct in the financial services industry. Given the strong connection between the two, tackling poor culture will be a major priority for ASIC over the next six months and beyond. We'll ensure that everyday Australians who suffer loss are remediated appropriately and as quickly as possible.”
In the last six months, ASIC achieved 323 enforcement outcomes. Of those, 81 related directly to those providing financial services specifically, such as mortgage brokers.