Regulating financial advisers in the UK: Lessons for Australia

Prompted by the 2008 Global Financial Crisis, the Australian government introduced the Future of Financial Advice reforms in 2013. It aimed to improve the quality of financial advice by virtue of a best interests duty and a ban on conflicted remuneration, inter alia. Despite the reforms, public trus...

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Bibliographic Details
Main Authors: HE, Weiping, LIU, Han-wei
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2021
Subjects:
Online Access:https://ink.library.smu.edu.sg/sol_research/4400
https://ink.library.smu.edu.sg/context/sol_research/article/6358/viewcontent/Regulating_Financial_Advisers_in_the_UK_Lessons_fo.pdf
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Institution: Singapore Management University
Language: English
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Summary:Prompted by the 2008 Global Financial Crisis, the Australian government introduced the Future of Financial Advice reforms in 2013. It aimed to improve the quality of financial advice by virtue of a best interests duty and a ban on conflicted remuneration, inter alia. Despite the reforms, public trust in financial advisers remains unacceptably low. Adviser misconduct, driven by conflicted selfinterest, remains prevalent. By contrast, there is relatively greater trust in financial advisers in the United Kingdom (‘UK’). This article focuses on how the UK regulates financial advisers, where the best interests duty and suitability rule also apply. The analysis that follows is confined to the legislative text. The UK regulatory regime offers directions and possibilities for further Australian reforms.