Blair Vernon
AMP is calling for social media companies to be included in reforms to strengthen governance and accountability across the financial system following the collapse of Shield and First Guardian.
ASIC research found close to two thirds of Australians aged 18 to 28 use social media for financial information and guidance. As more Australians turn to social media as a gateway to financial decisions, AMP says digital platforms should be part of any comprehensive framework designed to protect consumers from financial harm
AMP Chief Executive Officer Blair Vernon said: “The Government is right to examine the responsibilities of trustees, fund managers, advisers, licensees and lead generators. Those of us running financial services businesses, including AMP, should expect scrutiny and accept our responsibilities.
“But social media cannot be left out. ASIC’s own research shows social media is increasingly being used to inform financial decision-making for younger Australians. A social media post, search result or targeted advertisement can be someone’s first contact with an investment opportunity, leading to decisions about savings they have spent years building.
“Some social media platforms have introduced checks on financial advertising. Those checks are welcome, but they are only part of the comprehensive governance framework needed to protect retirement savings and hold businesses accountable where they contribute to financial harm.
“Advice businesses and superannuation trustees are helping fund the Compensation Scheme of Last Resort, including many small businesses with no involvement in the failures it covers.
“Where social media companies have helped facilitate harm, and potentially profited from it, their contribution to the scheme should also be given due consideration.
“The Compensation Scheme of Last Resort is more than a compensation mechanism. It is a powerful way to drive accountability and, most importantly, prevention across the financial system.
“Australians should be able to access useful financial information and quality advice wherever they seek it. Protecting them requires accountability across the entire financial value chain, including the digital platforms that increasingly sit at its front door.”