Consumer Outcomes of the 2014 Financial System Inquiry
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This paper reviews the eight recommendations of the 2014 Financial System Inquiry relating to consumer outcomes. These include strengthening product issuer and distributor accountability, providing specific product intervention power to the Australian Securities and Investment Commission (ASIC), and facilitating innovative product disclosure. They also include better aligning the interests of financial firms and consumers, raising the competency of financial advisers, and improving guidance and disclosure in general insurance. The response by Australian industry and consumer groups has been generally favourable despite the expected difficulties and lack of detail associated with the product design and distribution obligation, and concerns about the substantial product intervention powers extended to ASIC. Some unease also exists about the apparent inattention to key issues in the general insurance industry, especially underinsurance and noninsurance in home and contents insurance relating to natural disasters.
JASSA The FINSIA Journal of Applied Finance
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Banking, Finance and Investment not elsewhere classified