“Financial services giants fork out $5bn for advice remediation”
Source Of News
By Joel Ronchi, CEO, March 2023
That headline is scary.
The corporate regulator (ASIC) reported as at 31 December 2022, a total of $4.7 billion in compensation had been paid or offered to approximately 1.6 million consumers.
The remediation arises mainly from:
* failure by the institutions to deliver ongoing advice services to financial advice customers who were paying fees to receive those services; &
* the ineffective oversight of financial advisers by the institutions to identify and deal with ‘non-compliant advice’.
This is why Fourth Line has experienced an almost doubling of its client base in 2022 as forward-looking licensees use Fourth Line to prevet advice and catch any issues before they go out the door to the client.
It is important to remember that once the advice has been delivered to the client that is when any breach will occur.
Once a breach has occurred it’s about remediation, not rectification.
You can read the FULL ARTICLE here https://www.moneymanagement.com.au/news/financial-planning/financial-services-giants-fork-out-5bn-advice-remediation
Fourth Line is a rigorous RegTech risk management and compliance system for advice practices, dealer groups and other wealth management participants. Fourth Line uses algorithmic approaches to simplify the complexity in advice reviews whilst maintaining human oversight, empowering compliance teams to coach and develop strong advice behaviors through data driven insights from advanced analytics for adviser, practice/dealer group and industry benchmark comparison with centralised document storage and access to meet regulatory needs.
For information email: firstname.lastname@example.org