As part of its Wealth Management Project, Australian Securities and Investments Commission (ASIC) has released its report into how effectively Australia’s largest financial institutions oversee their financial advisers. The report is based on a 20-month project instigated by information received by ASIC about non-compliant advice, as well as public concerns about wider problems in large advice firms.
The full report is structured in three key phases and can be accessed here.
Phase 1: How the Financial Institutions Identified and Dealt with Non-Compliant Conduct by Advisers
ASIC found between 1 January 2009 and 30 June 2015:
- financial institutions relied heavily on information from adviser audits and customer complaints to identify non-compliance
- there were significant delays in reporting non-compliant conduct by advisers to ASIC. In fact, almost half of non-compliant advisers had not been notified to ASIC until AFS licensees did so as part of this project.