ASIC said its new consultation paper proposed guidance on review and remediation programs conducted by licensees, as well as proposing clarifications to the record-keeping requirements for licensees relating to be interests duty.
"A key part of an AFS licensee's obligations is remediating clients for losses suffered following non-compliant advice, fraud or other breaches of the law. At times, establishing a review and remediation program may be the most appropriate approach to address client loss," the regulator said.
ASIC said the draft guidance sets out how to design and operate an effective review and remediation program, and how such a program would operate alongside other consumer compensation obligations.
"ASIC wants to ensure that all review and remediation programs conducted by advice licensees operate in a way that is fair, honest and efficient and that all potentially affected consumers have access to remediation. Consumers should have trust and confidence that a program will produce fair and consistent outcomes," ASIC deputy chair Peter Kell said.
Advisers can find the consulation paper here
ASIC has released a new consultation paper on review and remediation programs conducted by AFS licensees.