Over the years, the corporate regulator has been the butt of jokes and the cause of heartache for many for their level of fierceness that has been described as akin to that of a toothless tiger.
The well publicised modern day Australian corporate collapses have left others standing at arms length jeering at ASIC and their panache for band-aid solutions.
Yet as speculation continues that there will be a changing of the guard at the top with ASIC chair Tony D’Aloisio stepping down, the cogs within the regulator have gained speed, with what appears to be more proactive actions.
Since January this year, ASIC has released close to 80 public notices that have ranged from director/ financial adviser bannings, relief statements, guidance papers and enforceable undertakings.
It is not known whether the increased positive activities from the regulator are a last hurrah for D’Aloisio or merely ASIC beginning the process of activating its government bestowed “greater powers”.
In March, ASIC released an update on its plans for 2011, with aggregator licensees, quality of advice, advice relating to complex products such as capital guaranteed products; and the use of managed discretionary accounts as being on their radar.
Later that same month, ASIC announced it had begun shadow shopping research to examine the quality of retirement advice. Initially this announcement caused concern that the shopping would in fact be an excuse to simply monitor the industry.
On 1 April this year, ASIC released updates to four regulatory guides in relation to financial planning: Regulatory Guide 36 Licensing: Financial product advice and dealing, Regulatory Guide 121 Doing financial services business in Australia, Regulatory Guide 170 Prospective financial information, and Regulatory Guide 175 Licensing: Financial product advisers, conduct and disclosure.
Five days later, ASIC followed up their regulatory updates with a call to action to the industry on a set of new industry proposals that intend to amend the assessment and professional development framework for financial advisers.
The proposed changes include a requirement that all new and existing financial advisers who provide tier one financial advice pass a new competency exam to ensure they are capable to perform their role.
ASIC has also proposed that all new financial advisers following the “entry stage” be supervised by a manager with at least five years experience in the industry for a minimum period of one year.
Under the proposal, all financial advisers will also have to undertake a knowledge update review every three years.
It may fall into the reactive and Johnny-come-lately category for some, and even the sceptics in the industry could perhaps agree that ASIC’s push for industry change is a positive.
What are your thoughts on ASIC’s proposals? Will it make a difference to the industry?
