ASIC set to burn the churn

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The Australian Securities and Investments Commission (ASIC) will analyse life company records in order to find advisers who churn, according to Claire Wivell Plater, Managing Director of The Fold Legal. “It is pretty clear that ASIC would have liked to see life insurance commissions banned as part of the Future of Financial Advice reforms,” Ms

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Do you use a platform? You could be breaching the Best Interests Duty

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Recent guidance from the Australian Securities and Investments Commission (ASIC) confirms in no uncertain terms that the Best Interests Duty applies just as much, if not more, to platform recommendations as it does to investments. “We discovered the guidance around platform recommendations while reviewing RG148 on platforms,” says Claire Wivell Plater, Managing Director of The

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Risky Business for Insurance Brokers

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Insurance brokers who are advising their corporate/commercial clients once a year have to pick up their act to avoid unwanted Professional Indemnity (PI) claims, according to Charmian Holmes, Solicitor Director of The Fold. “The end of financial year can be a risky time for insurance brokers who are advising commercial and corporate clients, as many

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The Fold: Helping Advisers Get on with FoFA Business

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As the start of the Future of Financial Advice (FoFA) reforms races towards us at headlong speed, there is an upswing in the number of advisers working on changes to their systems and processes to accommodate their new obligations, according to Claire Wivell Plater, Managing Director of The Fold. “We’re seeing a real willingness to

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Advisers personally liable for breaches of Best Interests Duty

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Employed advisers who are authorised representatives can be held personally liable for serious breaches of the Best Interests Duty and may face up to $200,000 in fines once Future of Financial Advice (FoFA) reforms come into effect on July 1, according to Charmian Holmes, solicitor director at The Fold Legal (the Fold). Ms Holmes said

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ASIC Guidance on asset-based fees a step too far

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  Part of ASIC’s guidance on conflicted remuneration has been taken a step too far, according to Claire Wivell Plater, managing director of The Fold. “Under the new guidance, if an asset-based fee is paid to the AFS licensee, the licensee will now need the client’s clear and informed consent to pass on any portion

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ASIC breaches: when to hold and when to fold

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Working with ASIC after a breach may be a better, quicker way for financial services business to get back on track than ‘lawyering up’, according to Dr Hillary Ray, Senior Lawyer at The Fold Legal (The Fold). “Many businesses panic when ASIC serves them with a notice,” Hillary said. “A smarter strategy may be to

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Asset based fees – can you charge them?

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Advisers may need to rethink how they charge for advice under the Conflicts Priority Rule in Regulatory Guide 175 (RG175) as asset-based fees have the potential to create just as much conflict of interest as commissions. Claire Wivell Plater, Managing Director of The Fold, says the problem with asset based fees is that they incentivise

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A frank launch for The Fold website

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Can dealer groups retain volume bonuses under FOFA? Do you need to be a mind reader to figure out what ASIC wants in terms of Codes of Conduct? Can you keep paying commissions under FOFA? These are some of the issues The Fold Legal (The Fold) team tackle on the Frankology blog on their newly-launched

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Hillary Ray comes into The Fold

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The Fold Legal (The Fold) is delighted to announce the appointment of Hillary Ray who joined the team in the capacity of Senior Lawyer this week. “Hillary is joining us from ASIC where she held the role of Senior Lawyer and APRA Liaison for over seven years,” says Managing Director of The Fold, Claire Wivell

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