Thursday, June 9th, 2011
Could ASIC drive one of our major banks out of the advice market?
Well if they followed the lead provided by recent UK legislation perhaps they may!!
In late January 2011 the UK regulator, the Financial Services Authority (FSA) detailed how financial advice is to be provided in the UK going forward, stipulating that fines and compensation of up to AU$106 million will be imposed for unsuitable advice. Almost immediately Barclays Bank announced that they were withdrawing from the UK advisory market and their 1,000 advisers would be seeking redeployment revealing an alarming lack of confidence in their advice.
Margaret Cole, the FSA’s managing director of enforcement and financial crime, said “The FSA requires firms to have robust procedures in place to ensure any advice given to customers is suitable. Therefore, when recommending investment products, firms should take account of a customer’s financial circumstances, their attitude to risk and what they hope to achieve by investing.” The fine is the highest ever imposed by the FSA for retail failings.
Don’t wait for the regulator to bring out the big stick in Australia. Be diligent when it comes to your life’s savings. Segue offers an obligation free opportunity for you to understand everything you need to know when it comes to choosing an adviser – along with the opportunity to get to know how Segue go about taking into account your financial circumstances, your attitude to risk and what you hope to achieve when it comes to your retirement plans. Call Jess today to take advantage of this opportunity. Don’t risk your money with poor advice.
