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Jun 4, 2014

Embarrassing ASIC admissions show danger of FOFA repeal

The government is still hoping to push through its repeal of Labor's Future of Financial Advice reforms, but ASIC's admissions to Senate estimates aren't making it easy.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

Financial planning remains a “target-rich environment” for the financial regulator, and the regulator is now more sceptical and less trusting of the industry, but it will have to scale back its surveillance and target its regulatory efforts more carefully due to budget cuts, officials of the Australian Securities and Investments Commission have told an estimates hearing this morning.

ASIC also declined to assure consumers they would always get appropriate financial planning advice from the Commonwealth Bank’s wealth management arms, and admitted that “the level of trust and confidence” in the bank was “misplaced by us”.

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3 comments

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3 thoughts on “Embarrassing ASIC admissions show danger of FOFA repeal

  1. CML

    So, Toady and his motley crew are going to repeal these laws in order to allow their mates in the banks, who are mostly crooks, to carry on ripping off the ordinary folk?
    Then, just to make sure said banks/crooks can do what they like, Toady et al have nobbled the regulator?
    Sounds about right! The mind boggles!! Who elected these pillars of society again? Shame on all of you.

  2. Bento

    “The government couldn’t have picked a worse time to slash the financial regulator’s budget”

    Sorry Bernard. That is absolute rot.

    ASIC is known both inside and outside the industry as the Toothless Tiger. All who operate at the very large, and very deep, dodgy end of the financial services game, have almost no fear of the regulator as it is well and truly captured, and possibly filled with, the pigs at the trough.

    ASIC, on the very clear evidence of their inability to take any of these crooks away, seems to be operating merely to protect those who it is supposed to supervise. Giving them more money is not the answer.

    We have laws against theft, dishonesty, and unconscionable conduct, yet they obviously do little to deter the con artists making a mint from the savings of others.

    Maybe it’s as simple as banning commissions and uniform no BS disclosure rules? It would probably send half of the insiders packing from the industry and good riddance.

  3. klewso

    Think of the money this government saves doing this – then think about, after the sharks have had their fill, how’s the aged pension going to cope?

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