Ripoll report on financial products and services released

The Parliamentary Joint Committee on Corporations and Financial Services (chaired by Bernie Ripoll MP) has released its report into the issues associated with recent financial product and services provider collapses, such as Storm Financial, Opes Prime and other similar collapses, with particular reference to:

  • the role of financial advisers;
  • the general regulatory environment for these products and services;
  • the role played by commission arrangements relating to product sales and advice, including the potential for conflicts of interest, the need for appropriate disclosure, and remuneration models for financial advisers;
  • the role played by marketing and advertising campaigns;
  • the adequacy of licensing arrangements for those who sold the products and services;
    the appropriateness of information and advice provided to consumers considering investing in those products and services, and how the interests of consumers can best be served;
  • consumer education and understanding of these financial products and services;
  • the adequacy of professional indemnity insurance arrangements for those who sold the products and services, and the impact on consumers; and
  • the need for any legislative or regulatory change.

In conducting its inquiry, the Committee decided to focus specifically on non-superannuation products and services.

The Committee’s recommendations focus on stricter regulation of financial advisers.

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