Risk Regulatory Update

ASIC seeking feedback on Financial Services and Credit Panel

The Australian Securities and Investments Commission has released a consultation paper looking for feedback on updates to the Regulatory Guide on the Financial Services and Credit Panel (FSCP). Proposed updates include determining when to convene a sitting panel of the FSCP, the approach to holding hearings of sitting panels using technology, and how to publicise decisions of sitting panels.

Feedback is also being sought on determining if loss or damage to a client or benefit to a financial adviser is material and assessing an adviser’s fitness and propriety.

FPA calls for reduced complexity and greater support for advisers

The Financial Planning Association (FPA) has made a submission to the Australian Law Reform Commission’s Review of the Legislative Framework for Corporations and Financial Services Regulation calling for less complex legislation and more support for financial planners.

The submission said proposals to make financial advice law and regulation simpler via a ‘rules book’ were supported by the association, but that financial advisers were faced with a great many challenges that could be simplified. FPA chief executive Sarah Abood said in the submission, “The financial planning profession doesn't need more regulation, it needs better regulation.”

“To ensure compliance, planners are required to comply with four laws regulated by eight regulators with additional oversight from Australian Financial Services Licensees and professional associations and additional consumer complaint mechanisms through two ombudsman services and the courts.”