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Thursday 16 April 2015

15-081MR ASIC update on Wealth Management Project - Investigation into charging of advice fees without providing advice

ASIC today provided an update on its Wealth Management Project which is focusing on the conduct of the largest financial advice firms.

ASIC is investigating multiple instances of licensees charging clients for financial advice, including annual advice reviews, where the advice was not provided.  Most of the fees have been charged as part of a client's service agreement with their financial adviser.

Deputy Chairman, Peter Kell said: 'ASIC will consider all regulatory options, including enforcement action, where we find evidence of breaches of the law relating to fees being charged where no advice service has been provided. We will look to ensure that advice licensees follow a proper process of customer remediation and reimbursement of fees where such breaches have occurred.'

The ASIC Wealth Management Project was established in October last year with the objective of lifting standards in major financial advice providers. Under this project ASIC is carrying a number of investigations and is conducting a range of proactive risk-based surveillances with particular focus on compliance in large financial institutions.

ASIC's investigations are continuing.

Background

ASIC set up the specialist Wealth Management Project in October 2014 (refer: Senate Estimates: Opening statement - February 2015)

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Last updated: 23/03/2016 03:09