Posts tagged NAB
The cost of conduct risk

Smarter Compliance. Rep 515 “Financial advice: Review of how large institutions oversee their advisers” is the gist that keeps on giving. While it’s a gift that many would have returned immediately, there’s little doubt of its influence on the financial services industry - directly and as magnified by the Royal Commission. While it led to extensive changes in the financial advice industry including fragmentation, re-alignment and the increasingly definite separation of advice from product, it has reinforced the significant costs and obligations associated with providing advice. This article avoids prediction in favour of a simple discussion of the latest update and its implication for independent Licensees.

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Always on my mind: Licensees' approach to breach reporting

The Banking Royal Commission quickly and easily exposed profound and systemic non-compliance with the breach reporting obligations. Breach reporting may be "an important part of the regulatory framework" but the Commission’s hearings (and the Interim Report) show that, “on more than one occasion”, Licensees materially failed to comply with this obligation. Worryingly, they appeared to have suffered no consequences as a result of their failures. ASIC’s Report 594 on compliance with the breach reporting obligations highlights the extent of, and reasons for these failures. This article looks at three key take-outs for Licensees seeking to avoid regulatory censure.

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What is “independent advice”?

The increased public focus on vertical integration and the dangers of institutional advice has, understandably, driven an increasing focus on independent advice. The challenge, for both consumers and advisers, is that “independence” is neither consistently nor effectively defined. This article considers whether "Independence" and "institutional alignment" can co-exist and asks whether the profession needs to define independence on the basis of outcomes rather than structures.  

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