Powered by momentummedia
Adviser Innovation logo
Advisor Inovation logo
Stay connected
Subscribe to the Adviser Innovation eNewsletter.
ASIC regulatory guidance a plus for robo-advice

ASIC regulatory guidance a plus for robo-advice

author image
By Killian Plastow ·
November 01 2016

ASIC regulatory guidance a plus for robo-advice

ASIC's regulatory guide on digital financial product advice, RG 255, has the potential to prevent advice failures and grow confidence in the advice industry if properly implemented, according to software firm Decimal.

ASIC regulatory guidance a plus for robo-advice
nestegg logo

In a whitepaper titled 2017 State of digital advice transformation, Decimal said that RG 255 was "important for many reasons but primarily because it has the potential, if implemented properly, to prevent a digital advice scandal from occurring".

"RG 255 is important because it gives digital advice providers direction and guidance but it also gives ASIC a benchmark and standard to evaluate them. Without rules and guidelines, ASIC can't be an effective regulator," the company said.

In particular, Decimal cited the strict expectations around logging, storing and retrieving client data where digital advice has been provided, as being of immense value.

"RG 255 requires digital advice providers to extensively log all activity, distinguishing between advice delivered digitally and advice delivered by a person. If a person is involved, it should be clear exactly who did what," Decimal said.

Advertisement
Advertisement

Decimal noted that "at no other time in financial services history has ASIC been able to release guidance" without lobbying from various industry bodies and stakeholders, and that RG 255 will likely "stir more Australians to seek advice."

"From a consumer perspective, knowing there are checks and balances in place designed to protect them against poor or inappropriate advice and rogue operators builds confidence," the company said.

 

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook.
Find us on Twitter for the latest updates

Subscribe to our Newsletter

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy