Regulation of Financial Advisors: Will the Financial Services Reform Act Amendments Fix the Problem with Advisors?

15 Pages Posted: 27 Aug 2011

Date Written: August 26, 2011

Abstract

The problem addressed by this paper is based on the converging issues of education, independence and remuneration for financial advisors in Australia and the role the Australian Securities and Investments Commission (ASIC) has taken on. While encouraging the development of 'effective and efficient self-regulation' the goal remains, 'to maximize the comparability of financial products for consumers' through increased regulation and imposed bans on certain remuneration structures. The current committee formed to investigate the Future of Financial Advice (FOFA) is responsible for the redrawing of legislation relating to financial advisors. These representatives from the industry and government have retained the focus of regulatory compliance and documentary evidence without taking in the full range of issues essential to the relationship between advisors and their client’s, in particular the individual client’s seeking informed and appropriate investment advice. The question is posed: Will the impending changes to the regulation of financial advisors go far enough to address the failings within the current law?

Keywords: financial advisors, ASIC , financial services reform

Suggested Citation

Carrigan, Amanda Claire, Regulation of Financial Advisors: Will the Financial Services Reform Act Amendments Fix the Problem with Advisors? (August 26, 2011). Available at SSRN: https://ssrn.com/abstract=1917258 or http://dx.doi.org/10.2139/ssrn.1917258

Amanda Claire Carrigan (Contact Author)

Charles Sturt University ( email )

Panorama Avenue
Bathurst, NSW 2678
Australia

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
153
Abstract Views
1,027
Rank
347,308
PlumX Metrics