Risk Regulatory Update

ASIC launches financial adviser hub

The Australian Securities and Investments Commission (ASIC) has launched a financial adviser hub after industry feedback, to provide advice for licensees and advisers. The website is to act as a one-stop access point for guidance and information for licensees, advisers and other stakeholders.

Labor vows to scrap financial advice degree for experienced advisers

The Australian Independently Owned Financial Professionals (AIOFP) annual conference got political when a Labor Party statement was made regarding the easing of education requirements for experienced financial advisers. Advisers with 10 years’ experience and an unblemished record would not need to complete the university degree. The exam would still be required.

ASIC commences civil case against Westpac for charging fees of the dead

Westpac is now under civil proceedings by ASIC after allegations of widespread compliance failures across several Westpac businesses affecting thousands of customers. Allegations include the big four banks charging over $10 million in financial advice fees to over 11,000 dead customers. No advice was actually provided. Westpac has admitted the allegations in each of the six proceedings and agreed to remediate $80 million.

FASEA to be wound up, ASIC taking over

ASIC is getting ready to take on its new role as part of the Better Advice Bill, with FASEA wound up and its responsibilities passed on to ASIC.

MLC sued by ASIC

ASIC is suing MLC for allegedly failing to implement systems and controls for unpaid insurance benefits, premiums being charged without notice, and underpaid refunds. ASIC alleges $17.5 million in financial harm to over 260,000 customers.

FASEA exam pass rate sinking

In November 2021, just 52 per cent of all candidates sitting the Financial Adviser Standards and Ethics Authority (FASEA) exam passed. The 15th Financial Advisers Exam saw 63 per cent of first-timers passing the exam, with the overall pass rate dropping due to resits, which have an average 66 pass rate overall. Pass rates have been declining across the pandemic.