In his closing remarks at the ASIC Annual Forum in Sydney last week, ASIC chair James Shipton said everyone in finance must have the procedural discipline to ask, “Is this practice or product going to cause harm, be detrimental or have a negative consequence?”
“I am not convinced this level of questioning and procedural discipline has been applied by the financial industry when developing, and reviewing, business practices and financial products,” Mr Shipton said.
He added that financial systems not only need to be fairer – they must also be more inclusive.
“Ultimately, we need a financial system that not only serves every segment of the community but also is one where those who work in it feel proud of being a part of it,” Mr Shipton said.
“Proud because there is a broader community purpose to what they do and proud because they are professional in how they do it.”
Further, Mr Shipton said finance needs to find its noble and human roots and be a core part of the community, and not removed from it.
He said that if this can be achieved then we will have gone a long way for Australians to have trust and confidence in the financial system, highlighting comments by panellist Lynda Edwards, who said that something that is done that will have a negative outcome for customers is not fair.
“This is exactly the challenge, and discipline, that everyone in finance needs to address,” Mr Shipton said.
“They need the procedural discipline to ask, ‘is this practice or product going to cause harm, be detrimental or have a negative consequence?’.”
Start here ASIC
http://nathanbirch.com.au/
I don’t understand why ASIC don’t go after the dodgy company directors, Stock Brokers, and consultants, who constantly rip off mum and dad investors in the micro cap stock space! They seem to focus a lot more on Financial Advisers not giving out FSG’s.
Shipton & ASIC mofo’s – how about you take up the “fairness challenge”, and ASIC fulfill its core function to serve people and its obligation to act efficiently, honestly and fairly, and include the consideration, “Is this practice or bias towards ISA products going to cause harm, be detrimental or have a negative consequence?”
More Lip service . How about ASIC be a bit professional . Let’s have a cup of tea with some advisers in Melbourne to discuss our current state of play and tell us why for example , I have sent in 8 complaints of poor financial advice by my fellow colleagues the ASIC and nothing has happened ……Asleep at the Wheel as per the RC report .
Very rich words from James Shipton.
Why did he choose to ignore the negative consumer outcomes directly as a result of him cancelling Dover’s AFSL with no warning or consultation process?
“we need a financial system that (not only) serves every segment of the community” – unfortunately the evolution of advice provision and the costs involved combined with the limitation to upfront fees means that only the “wealthiest segments” will be able to pay for this service. Perhaps we ought to can super altogether and instead redirect the tax concessions into a sovereign wealth fund which pays out a decent retirement income to all? This would certainly reduce the need for advice for the masses
How about asic practice what they preach in regards to fairness. Pack of hypocrites
Cmon Jimmy, we all know ASIC doesn’t play by the same rules.
How about this? The industry challenges you to ask yourself, “do I know what the hell i’m talking about?” You know what they say, those you can’t do, teach.