In a speech delivered at the opening of a Senate inquiry into the performance of the Australian Securities and Investments Commission, ASCI chairman Greg Medcraft is reported to have said the commission still regards IFAs “as the riskiest sector” it regulates.
An Australian financial industry publication, Financial Standard, reported that Medcraft said: “In my own view, we still regard the advice sector as the riskiest sector that we regulate.”
Speaking notes made available by the ASIC today show that top of the regulator’s list of four recommendations for public legislative reform is the advice industry.
Specifically, the ASIC recommends raising financial adviser competence through a national exam and extending the public register to cover employee financial advisers which it said will help remove “bad apple” advisers from the industry.
The Financial Standard said Medcraft would not be drawn on the Australian Government’s proposed amendments to the Future of Financial Advice regulation which may see it drop its complete ban on commission, among other things.
As reported, the Government’s plans have stirred significant debate over the past couple of weeks, with consumer groups and financial adviser advocates making heated statements for both sides of the argument.
