"The use of default options that are carefully scoped and supported by clear objectives," is among ASIC's top suggestions as David Murray's panel moves into the second phase of its review of the Australian financial system. This is one option "for improving consumer outcomes," ASIC said in a further submission, taking an oblique approach to a central controversy of recent years in financial services. It may also inhibit the sales and service models of many suppliers in the wealth chain. ASIC also weighed in with a fresh take on "significantly rethinking the current regulation of general advice, which currently applied to a range of disparate activities."
ASIC suggested excluding some activities from certain licensing requirements, applying a more tailored regulatory regime to certain types of general advice and redescribing general advice that is primarily provided to generate sales as "sales" or "product" information. ASIC is also angling for parliament to widen its powers, which its speculated might be directed at "conflicted remuneration" were this approach "clearly producing market failures."