Regulation, said. 'ASIC has given this additional time strictly on the basis that MDA operators will take immediate steps to fully comply with the requirements of the ASIC class order and policy. Any MDA operator who believes there are any impediments to complying fully with the requirements of the class order should consider applying to ASIC for further relief', she said. Copies of PS 179, C0 04/194 and amending Class Order 04/612: Managed discretionary accounts - amendment, and Information Release 04-08: ASIC policy statement: managed discretionary account services are available on the ASIC website. 2.8 Soft dollar benefits need clear disclosure The Australian Securities and Investments Commission on 10 June 2004 released a research report on soft dollar benefits in the financial planning industry. The research explores the types of benefits that are offered to financial planning firms and how they are disclosed to clients. Soft dollar benefits are benefits other than standard commission payments. ASIC’s report reveals that a wide range of soft dollar benefits are being offered. Benefits to individual advisers include overseas trips, share options and cash bonuses for selling particular financial products. Benefits to financial planning firms include rebates’, ‘fee potentially worth millions of dollars each year to the larger firms. The report contains examples of both good and poor practice, which will provide guidance for industry about effective disclosure. advisers accept benefits with the potential to influence ‘If advice, the law requires they clearly disclose these conflicts of interest to clients’, said Mr Greg Tanzer, ASIC’s Executive Director of Consumer Protection and International. A number of firms are commended for clearly explaining soft dollar benefits in consumer-friendly language. Other firms are leaving their clients in the dark about these incentives, with disclosure that is vague or, in extreme cases, non-existent.
Regulation, said. 'ASIC has given this additional time strictly on the basis that MDA operators will take immediate steps to fully comply with the requirements of the ASIC class order and policy. Any MDA operator who believes there are any impediments to complying fully with the requirements of the class order should consider applying to ASIC for further relief', she said. Copies of PS 179, C0 04/194 and amending Class Order 04/612: Managed discretionary accounts - amendment, and Information Release 04-08: ASIC policy statement: managed discretionary account services are available on the ASIC website. 2.8 Soft dollar benefits need clear disclosure The Australian Securities and Investments Commission on 10 June 2004 released a research report on soft dollar benefits in the financial planning industry. The research explores the types of benefits that are offered to financial planning firms and how they are disclosed to clients. Soft dollar benefits are benefits other than standard commission payments. ASIC’s report reveals that a wide range of soft dollar benefits are being offered. Benefits to individual advisers include overseas trips, share options and cash bonuses for selling particular financial products. Benefits to financial planning firms include ‘fee rebates’, potentially worth millions of dollars each year to the larger firms. The report contains examples of both good and poor practice, which will provide guidance for industry about effective disclosure. ‘If advisers accept benefits with the potential to influence advice, the law requires they clearly disclose these conflicts of interest to clients’, said Mr Greg Tanzer, ASIC’s Executive Director of Consumer Protection and International. A number of firms are commended for clearly explaining soft dollar benefits in consumer-friendly language. Other firms are leaving their clients in the dark about these incentives, with disclosure that is vague or, in extreme cases, non-existent.
CORPORATE-LAW-ELECTRONIC-BULLETIN-June-2004.docx