REP 17 Compliance with advice and disclosure obligations: Report on primary production schemes
Released February 2003.
ASIC’s surveillance examined whether there is a correlation between the receipt of high commissions by financial advisers and the provision of inappropriate or misleading advice to investors to invest in such schemes. This report contains the findings of that surveillance, as well as the results of an independent survey of investors in such schemes, commissioned by ASIC.
Although the focus of this project was to examine levels of compliance with advice and disclosure obligations in one part of the managed funds industry, ASIC did encounter some limited instances requiring formal investigations into misconduct. As at the date of this report, those enquiries are continuing.
The findings of the campaign also give rise to avenues for potential law reform opportunities or further guidance which ASIC will explore with the Commonwealth Treasury.1 Furthermore, ASIC is committed to working with relevant industry associations with a view to enhancing the quality and professionalism of advice provided to retail investors.