Advisers and ASIC could resolve regulatory mess in an afternoon
The perennially discussed ridiculous levels of unnecessary compliance loaded onto advisers and consumers over the past seven years could be resolved in an afternoon between the Australian Securities and Investments Commission (ASIC) and representatives of the Advice industry.
That is what the Association of Independently Owned Financial Professionals (AIOFP) has told the chair of the Quality of Advice Review (QAR), Michelle Levy, at the same time as copying in Federal Parliamentarians.
In doing so, AIOFP executive director, Peter Johnston also provided Levy with a list of 191 product failures which his organisation has argued should stand as evidence of why banks should not be allowed back into the financial planning arena.
“We have been critical of your tendency of suggesting at times some good ideas but continually linking it to being contingent upon allowing the institutions back into advice regulated under a ‘best advice’ regime,” Johnston’s letter to Levy said. “We think Banks/Institutions [Banks] should stay out of advice of any description and remain with what they do best, standard banking/administration/management activities.”
“In fact, when you consider how poorly the Banks have performed in the wealth space over the years with inflicting consumer capital losses, no advice will be better than getting advice from them for most consumers.”
“Attached is clear evidence of how the Banks/institutions have managed their products since 2006 and specifically incorporating the GFC crisis. Their management skills have been woeful, the funds have generally performed poorly with capital losses and expensive compared to other options like the Industry Superannuation funds sector. As you will see, there are 191 funds with $43 Billion of consumers capital either failed, frozen or impaired.”
“We hastened to add that the Advice community has been inexplicably blamed for these failures whilst the Institutions and regulators run for legal cover….as you no doubt know, Advisers just recommend them, ASIC register them, Banks/custodians/trustees manage them and Research Houses rate them…..
“Considering the world is likely to be entering into another GFC similar event in 2023, we would suggest consumers are better to leave their cash in a savings account rather than running to the Banks looking for solutions…..
“The perennially discussed ridiculous levels of unnecessary compliance loaded onto Advisers and consumers over the past 7 years could be resolved in an afternoon between ASIC and representatives of the Advice industry. This should reduce the cost of advice by at least 50% and even further if other options are implemented,” the AIOFP letter said.
Yeh Peter & AIOFP a rare voice of truth for Advisers & to Canberra.
Unfortunately Canberra Pollies are far to conflicted to look at truth.
ASIC are corrupt beyond belief.
What would Pollies & ASIC do if they can’t blame Advisers for everything wrong ? Surely they can’t blame themselves :-/
Absolutely, Peter – provided neither FPA nor AFA involved!
Haha don’t be silly. Asic need to spend millions on “research” papers and consultation with product providers to make regulatory decisions.
plus let’s not forget Choice will need to take a short break from the Dyson vs Miele vaccuum cleaner debate to have a casting vote as well
With the research papers finding what ASIC wanted them to find prior to the research
AIOFP and Peter are good value! It’s a shame AFA and FPA sold us out years ago – pathetic!
Call the corruption out. Can we not just set up a gofund me page or a marketing expense levy and start bribing them? Surely a Million dollars speakers fee to appear at a conference for the next 4 years might do the job? We need to play the game as they’re playing it. ASIC and Treasury are corrupt. They don’t want Australians to be obtaining advice from Advisers, they want them to get it via a super fund and Accountant. This goes against every piece of Academic and private research into the value of advice. How else can you explain this mess? Insto’s and Super funds are bribing these corrupt public servants and consultants.
PS: I will post anonymously because the Nazi Party, (I mean ASIC) are searching the streets looking for spelling mistakes in Fee Disclosure Statements and I fear for my life. My concerns for my fellow Australians and their financial well-being come at a deep personal risk. Stay safe.