The corporate watchdog says it will increase the number of staff to investigate financial advice offered by the big companies including the big four banks and AMP.
The AFR reports ASIC (Australian Securities and Investments Commission) has vowed to put “more cops on the beat” to look at financial advice following a Senate inquiry into the regulator’s oversight of the Commonwealth Bank and Macquarie’s financial wealth arms.
Currently 20 ASIC surveillance staff oversee an estimated 54,000 financial advisers.
“We are just going to target the big firms because they provide 70% of the advice in Australia,” says ASIC chairman Greg Medcraft told the AFR.
“Even if you only have 20 people, it is a matter of having the compliance guys at the big firms who sit in front on those 20 people, getting the message that we are going to focus on them.”
The Commonwealth bank has apologised and extended its compensation scheme to 11,000 clients who received poor financial advice.
And Macquarie Bank was last month forced to write to 160,000 clients to offer remediation.
More from the AFR HERE.