The SMSF Association’s CEO, John Maroney, has accused licensees of putting self-interest and profit ahead of advisers and consumers in a submission to ASIC’s consultation on access to affordable advice.
Maroney said SMSF Association members have indicated the layer of compliance levied by some AFSLs “prioritises their own self-interests” rather than the provision of advice.
Further, the CEO states, “some AFSLs have a bias towards revenue generation and ensure that their compliance guidance attracts the least number of complaints.”
Echoing a charge made by ASIC Commissioner Danielle Press at
Professional Planner’s Best Practice Forum last year that conservative licensees were hampering scaled advice, Maroney accused AFSLs of having a “very risk-averse attitude” and an undue fear of the corporate regulator. “This has forced AFSLs to create an additional burdensome layer of compliance to mitigate their risk,” he states.