In February the Parliamentary Joint Committee on Corporations and Financial Services opened an inquiry on the issues associated with recent financial product and services provider collapses, such as Storm Financial, Opes Prime and other similar collapses.
The inquiry will focus on:
- The role of financial advisers
- Regulation for these products and services
- Commissions relating to product sales and advice, including the potential for conflicts of interest, the need for appropriate disclosure, and remuneration models for financial advisers
- The role played by marketing and advertising campaigns
- The adequacy of licensing arrangements for those who sold the products and services
- The appropriateness of information and advice provided to consumers considering investing in those products and services, and how the interests of consumers can best be served
- Consumer education and understanding of these financial products and services
- The adequacy of professional indemnity insurance arrangements for those who sold the products and services, and the impact on consumers; and
- The need for any legislative or regulatory change
CHOICE wrote a submission to the inquiry, discussing the role of financial advisers, the role played by commissions arrangements, consumer education and financial literacy, the adequacy of compensation arrangements, and the need for legislative change. You can read our submission here.