The AIOFP says they will be writing directly to the Minister and the Chairman of ASIC.

Hi, we will be writing immediately to Minister Daniel Mulino and ASIC Chair Joe Longo about the following critical issues that directly affects Consumers and the Advice Profession –

  1. The announcement today by ASIC of the possible product failure losses within the Australian Fiduciaries Ltd Group and the recent comments that ASIC are investigating the widespread failure of compliance duties within Custodians/Trustees/Auditors /Administrators MIS structures begs the question – who is responsible for their conduct? We can only assume that this duty is the responsibility of ASIC the supreme Regulator. 
  2. Furthermore, ASIC are responsible for ‘registering’ new Product Disclosure Statements onto the market but take no responsibility for the content or Director competency of these products. This all care and no responsibility attitude is astounding and then ASIC takes an Adviser Levy from Advisers for services ‘rendered’ – this is a clear case of a fee for no service outcome heavily criticised by Comm Hayne in the Banking Royal Commission.
  3. If ASIC takes no responsibility for product content/release and no responsibility for product conduct, what exactly do they do in this space to protect Consumers?
  4. Unless the intended structure of the CSLR is amended to reflect what the RAMSAY Report/Comm HAYNE originally recommended and both sides of Politics agreed to, it will ultimately destroy the Advice Profession. The CSLR rules must be returned to the pre FSC influenced structural ‘adjustments’.
  5. The AIOFP recommendation to the Minister will be  – once CSLR is adjusted every MIS must pay a fraction of their management fee into an account managed by CSLR to fund future product failures. Direct share trading incurs a levy for participation, the same should be applied to the Funds Management industry. 
  6. Vertical Integration must be banned to protect consumers and assist ASIC with regulating the market. Grandfather it for current providers but they must be subjected to a thorough independent annual assessment to monitor their activities. You are either a Product Manufacturer or a Financial Adviser, it is a breach of the Best Interests duty to be both.

 

We will keep you informed of developments.

Regards.

Peter Johnston | Executive Director
Association of Independently Owned Financial Professionals
Suite 416, 480 Collins Street, Melbourne VIC 3000
P 1800 111 203, d 03 9863 7574, m 0418 857 621
www.aiofp.net.au | Download my business card

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