In recent times, the business pages of Australian newspapers seem to have carried almost daily articles about commissions paid to financial planners. The press coverage has been almost uniformly negative. Two Federal government inquiries are currently considering the matter. Two industry bodies have announced self-imposed bans on commissions. It is also a focus for ASIC, both in terms of policy development and dealing with headline cases. Comments by the Chairman of ASIC at the recent IFSA conference have reinforced the sense of the policy tide turning against commissions.
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Author
Michael Mathieson, Senior Associate
The Australian funds management industry, the fourth largest in the world, could potentially become subject to many regulatory reforms. If all of the possible reforms are implemented and the Australian regime is brought closer in line with more prescriptive regimes around the world, Australian funds will need to undergo radical change.
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Authors
Jim Boynton, Partner
Will McCosker, Senior Associate
The GFC has seriously tested investor trust and confidence in the capital markets. Frozen credit combined with corporate and investment product failures have curbed investor appetite. It has also led to governments, regulators and international bodies around the world scrutinising more closely what Prime Minister Rudd calls, “a plethora of new, unregulated financial institutions that arises out of financial liberalisation”.
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Authors
Damien Richard, Partner
Michael Hung, Solicitor
Speaking at IFSA’s annual conference recently, Tony D’Aloisio, Chairman of ASIC said that the economic crisis would lead to further regulatory changes: “a case for no change or leave it to industry will not stand up”. He was not confident that the [financial services] industry will deal with all advice issues and he identified “front end commission” as causing problems for the quality of financial advice provided to consumers. Mr D’Aloisio said that financial advisers have a duty to act in the best interests of their clients. He implied that it should be imposed by statute.
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Author
Michelle Levy, Partner