Banned commission payments on the horizon
(28 April 2010 – Australia) Australia is set to ban its financial advisers from accepting commission payments, in an effort to protect investors from conflicts of interest.
New Zealand is also currently revising its draft code for advisors, which does not ban them from receiving commissions but says they must place their clients’ interests first.
The new regulations, effective from December, sets a minimum standard of qualification required and also requires all advisers to be registered.
The Australian changes are part of a package of measures announced by Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen. They come into force from July, 2012.
As part of the changes the Australian Securities and Investments Commission would also be given more power to ban ‘unscrupulous operators’.
The new laws ‘are designed to tackle conflicts of interest that have threatened the quality of financial advice that has been provided to Australian investors, and the mis-selling of financial products that culminated in high profile corporate collapses’, Mr Bowen said.
The new regulations, effective from December, sets a minimum standard of qualification required and also requires all advisers to be registered.
The Australian changes are part of a package of measures announced by Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen. They come into force from July, 2012.
As part of the changes the Australian Securities and Investments Commission would also be given more power to ban ‘unscrupulous operators’.
The new laws ‘are designed to tackle conflicts of interest that have threatened the quality of financial advice that has been provided to Australian investors, and the mis-selling of financial products that culminated in high profile corporate collapses’, Mr Bowen said.
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