After several high profile remediation programs by financial advice organisations, the Australian Securities and Investment Commission (ASIC) has decided to prepare guidance for industry participants in how to develop and deliver review and remediation programs to customers that are fair, honest and efficient. Providing services in a ‘fair, honest and efficient’ manner is an obligation of all licensees.
The proposed regulatory guide will build on existing regulatory guides, Regulatory Guide 165 Licensing: Internal and external dispute resolution. (See also Regulatory Guide 139 Approval and oversight of external dispute resolution schemes).
This recent announcement is consistent with ASIC’s general activity in lifting the standards for financial advice. Given each organisation has been responsible for developing its own program, the guidance is extremely timely for future programs and to assist licensees in continuing to maintain their compliance obligations. Positively, ASIC will be consulting with stakeholders in developing the guide.
To read ASIC’s media release, click here.