Bad apples remain as legislation "spoiled"
Stats show rules aimed at weeding-out dodgy financial planners have left some standing.
“There’s still pockets of poor advice out there,” ASIC commissioner Greg Tanzer said at the release of a six-month report card.
ASIC made 256 enforcements to protect financial consumers in the last six months.
Of that amount, 83 were in the market integrity, corporate governance and financial services areas, and 173 in small businesses.
In the 83 actions taken against bigger firms, four were cases of insider trading, one case of market manipulation, and seven cases were against company directors.
In the last three years, ASIC says it has banned 130 people from giving financial advices, 26 of which were in the last six months.
The figures come amid enhanced scrutiny, after the Commonwealth Bank’s recent financial planning scandal.
Now that the Abbot government’s changes to Labor’s Future of Financial Advice laws have passed, many are waiting to see whether the already fairly commonplace deceitful advice will increase.
Some say the chances of more dodginess are enhanced by about $120 million in funding cuts on the way for ASIC.
Commissioner Tanzer said regardless of new legislation, financial advice firms should conduct better employment checks and have a higher standard of education for their advisers.
He is also pushing for a national register of advice firms and their staff.