ASIC update on Royal Commission implementation

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ASIC has provided its second update on its actions in response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (the Royal Commission). The Update outlines a number of measures across the organisation by which ASIC is implementing the seven priorities highlighted in its Corporate Plan 2019-23, one of which is […]

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ASIC makes product intervention order banning short term lending model to protect consumers from predatory lending

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ASIC has used its product intervention power to ban a model of lending in the short term credit industry which has been found to cause significant consumer detriment. In its first deployment of this power ASIC targeted a particular business model where a short term credit provider and its associate charged fees under separate contracts. […]

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ASIC commences court action against Select AFSL over phone sales of life insurance

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ASIC has commenced civil penalty proceedings in the Federal Court against Select AFSL Pty Ltd (Select), BlueInc Services Pty Ltd (BlueInc), Insurance Marketing Services Pty Ltd (IMS) and director Russell Howden alleging breaches of the law arising from telephone sales of life and accidental injury insurance issued by St Andrew’s Life Insurance Pty Ltd under […]

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ASIC research highlights the importance of reforms for mortgage brokers and home lending

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ASIC has released a report Looking for a mortgage: Consumer experiences and expectations in getting a home loan. As part of this research, ASIC followed over 300 consumers in the process of taking out a home loan and surveyed another 2,000 consumers. This research examines consumer decision-making in relation to home loans to identify what […]

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Consumers see value in financial advice, but lack of trust remains an issue

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New ASIC consumer research released reveals the barriers faced by consumers when considering financial advice. ASIC’s Report 627, Financial advice: What consumers really think (REP 627) presents independent research into consumer experiences of, and attitudes towards, financial advice and the advice industry. The research focused on the overall use of financial advisers, motivators and barriers to seeking personal […]

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ASIC to review industry transition towards ending grandfathered remuneration for financial advice

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ASIC is investigating the progress of transition away from grandfathered conflicted remuneration arrangements for financial advisers. The investigation, directed by the Treasurer following the Government’s commitment to end the practice by 1 January 2021, will review the steps taken by industry participants from 1 July 2019 until the 2021 deadline. ASIC will also investigate any […]

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Details for public hearings on ASIC’s responsible lending guidance announced

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ASIC will hold public hearings in Sydney on the 12th of August and Melbourne on the 19th of August. The hearings are part of the wider public consultation on ASIC’s guidance on the responsible lending obligations. It will allow ASIC to test particular issues raised in submissions. More information about the consultation, including the current Regulatory […]

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ASIC has warned superannuation trustees about influencing employers’s choice of default fund through improper inducements

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ASIC has issued guidance to superannuation trustees, reminding them that using improper inducements to influence employers in their choice of default fund is illegal. The guidance set out in Infosheet 241, draws attention to the recently amended s68A of the Superannuation Industry (Supervision) Act 1993.It also illustrates how s68A applies in common scenarios to ensure that […]

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ASIC update on compensation by institutions for poor financial advice

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Australia’s five largest banking and financial services institutions have paid a total of $119.7 million in compensation as at 30 June 2019 to customers who suffered loss or detriment because of non-compliant advice given by financial advisers. This compensation has been paid under review and remediation programs initiated as a result of the ASIC review […]

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A recent study has upheld the Australian equity market’s record for cleanliness

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A recent review by ASIC found Australian equity markets continue to operate with a high degree of integrity. Report 623 Review of Australian equity market cleanliness: 1 November 2015 to 31 October 2018 examines market cleanliness for the period, with a focus on insider trading and information leaks ahead of material market announcements. It extends our work […]

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