ASIC is investigating a number of financial planning dealer groups that advisers perceive as “licensees of last resort” as part of its crackdown on poor reference-checking processes.
In March 2017, ASIC warned it will take action against the licensees if they do not start making efforts to prevent rogue advisers from circling the industry.
Speaking to the parliamentary joint committee on corporations and financial services on Friday, ASIC deputy chairman Peter Kell said the regulator is also conducting a surveillance of seemingly easy-to-join dealer groups.
“There is a bit of an issue around some licensees being perceived as 'licensees of last resort', where you go if you left other places,” Mr Kell said.
In March 2017, ASIC warned it will take action against the licensees if they do not start making efforts to prevent rogue advisers from circling the industry.
Speaking to the parliamentary joint committee on corporations and financial services on Friday, ASIC deputy chairman Peter Kell said the regulator is also conducting a surveillance of seemingly easy-to-join dealer groups.
“There is a bit of an issue around some licensees being perceived as 'licensees of last resort', where you go if you left other places,” Mr Kell said.
“I can assure you that is very centre for us.”
Mr Kell declined to name the groups of last resort, but made it clear the issue of poor reference-checking exists across the industry, and not just at major institutions.
He also reiterated calls for more powers to ban those supervising financial advisers.
“We have, as part of our enforcement review, also sought some additional powers. The power to ban senior managers and executives is not nearly as straightforward for us as banning the frontline advisers,” he said.
“Yet, sometimes, these are the people who are actually driving the bus," Mr Kell said.
Read more:
RBA governor upbeat on economy
Asset managers must be more ‘resilient’: ASIC
Investors should be looking to increase allocations to defensive assets this year, with relations between the US and China contributing to m...
Rapid changes in the financial sector are opening opportunities for investors, with the introduction of open banking and digitization to acc...
Australia’s competition watchdog is proposing to accept an application for a certification trademark that signals to potential investors t...
