This article is more than 24 months old and is now archived. This article has not been updated to reflect any changes to the law.
As well as highlighting the inadequate regulatory structure for property-based investment schemes, the Westpoint collapse has led to discussion of other underlying regulatory issues — namely:
Recently, ASIC released a discussion paper with case studies and practical suggestions for how licensees may manage conflicts of interest. This demonstrates ASIC's heightened surveillance of conflict-related issues — and potentially greater enforcement action. The discussion paper can be downloaded from www.asic.gov.au/ppp
ASIC has requested submissions in response to the discussion paper — which may lead to revisions of ASIC's Policy Statement 181 "Licensing: Managing Conflicts of Interest". That policy supports the law on the duties of AFS Licensees to manage conflicts, see Section 912A(1)(aa) of the Corporations Act 2001 (Cth).
Commissions v Fee for ServiceASIC's policy statement refers to the problems associated with licensees being remunerated on a commission basis — and the challenges this presents for managing conflicts of interest.
There is increasing media discussion of the relative merits of the fee for service model as an alternative to a commission model. Even, the Financial Planning Association's "Principles for Managing Conflicts of Interest", although not endorsing a fee for service model, emphasises the importance of financial planners separately identifying financial planning advice fees. Often these fees are difficult to determine, for instance if they are reflected in reduced rates of return from managed funds.
Qualifications: BA, LLB, Monash University, LLM, University of Melbourne
Julian is a Partner in Maddocks Commercial team. He advises a diverse range of clients across the Australian commercial and financial services landscape.
Julian's corporate practice spans various sectors, including financial services, professional services, and family-owned enterprises. He advises on:
Julian's financial services practice involves advising financial market participants on the entire financial services lifecycle including fund structuring, management options, and compliance with regulatory requirements.
Julian also offers guidance on alternative and disruptive financial services businesses, such as online foreign exchanges, internal markets, and management rights schemes.
The legal information and commentary on this site is general only. Documents ordered through Cleardocs affect the user's legal rights and liabilities. To assess their suitability for the user, legal accounting and financial advice must be obtained.