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ASIC finds unqualified marketers acting as financial advisers and pocketing fees

ASIC review finds unqualified marketers pocketing 80-100% of fees while advising on $678m in Australian superannuation investments.

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The Australian Securities and Investments Commission reviewed 15 financial advice licensees and discovered that unqualified marketers were performing core advisory tasks while earning 80 to 100 percent of upfront fees. This practice led customers to invest $678 million, with over 90 percent of those funds being superannuation, after being recruited via social media or phone calls.

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ASIC finds unqualified marketers acting as financial advisers and pocketing fees

The Australian Securities and Investments Commission has uncovered a systemic issue where unqualified marketers are performing the duties of licensed financial advisers. A review of 15 financial advice licensees found that these individuals are shaping critical decisions regarding Australians' retirement savings without the necessary qualifications. This practice allows dodgy marketers to pocket fees that should legally belong to qualified professionals. The findings highlight a significant gap in the regulatory oversight of financial advice, potentially exposing consumers to inappropriate investment strategies and financial loss.

Thewest

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