Risk Regulatory Update

AFA and FPA want changes to education standards proposal

The Association of Financial Advisers (AFA) and the Financial Planners Association (FPA) have both recommended changes to the financial adviser education standards proposal. Submissions have been made by both associations recommending changes to the government’s proposal for 10 years of experience in the past 12 years being accepted instead of formal education. Both argue that formal education is necessary for industry participants to be deemed professionals.

ASIC completes royal commission into financial services

The Australian Securities and Investments Commission (ASIC) has announced the completion of its investigations into the financial services industry via a royal commission. The Financial Services Royal Commission was completed in late 2021, with six proceedings finalised or undergoing litigation at the end of 2021, with the ANZ civil case in December the last.

RI Advice Group to pay $6 million penalty

RI Advice Group has been ordered to pay a $6 million penalty for not taking reasonable steps to ensure a financial adviser under its umbrella, John Doyle, provided appropriate financial advice and acted in his clients’ best interests.

Doyle was ordered to pay $80,000 in penalties after advising clients to invest and stay invested in complex structured products, advice that was inappropriate, says ASIC. Doyle received commissions from each of these clients and investments, despite the products not being suitable for the clients, who were approaching retirement.