Legislators ignoring advisers’ concerns
Founder of PFM Australia and former financial planner Barry Daniels recently outlined the true costs of recent reforms which have left advisers “exhausted and spent physically, financially and mentally.”
He argued: “Very few legislators see (or even appreciate) the world through the eyes of self-employed financial planners dedicated to protecting the financial well-being of clients – as employers providing jobs – contributors to the economy as tenants and customers buying equipment, cars, etc.”
“All this,” he continued, “while simultaneously being forced to deal with nearly two decades of unrelenting reforms, scrutiny, new processes, compliance and unprecedented administrative burden that commenced in 2001.”
Ultimately, Daniels said this will lead to consumers being forced to pay more for advice, a significant reduction in the overall number of financial advisers and increased cost to taxpayers “through the inevitable decline in insurance coverage leaving those who have been beset with illnesses and disablement to lean even more on the public purse.”
ASIC revamps internal governance post-Commission
ASIC recently updated its internal governance framework in response to recommendations from the Royal Commission.
The regulator’s chair, James Shipton, said the changes “[reflect] the importance ASIC places on transparency, regulatory integrity and effective oversight and management of its functions and responsibilities.”
These changes include an updated committee structure “to strengthen oversight of executive actions and assist the Commission in the performance of its responsibilities,” as well as accountability statements for executive directors and commissioners that “identify core responsibilities and individual accountabilities.”
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