This is completely absurd, the Corporations Act has been there for a long time and clearly states the obligations a financial adviser has to their clients and the procedures when recommending or switching products. Unauthorized transactions, switching into high risk products, misleading deceptive conduct and other fraudulent criminal activities can only happen when the procedures of the Corporations Act is not adhered to.

So the question remains, how do immoral and illegal conduct and known by the adviser at the time as dishonest conduct in relation to ordinary people occur?

Are we not missing the point here? People didn't lose money because the adviser didn't know their clients well enough......they knew very well that their clients were naive and trusting and used that to their financial advantage. The Corporations Act is already there, if the rules and laws were adhered to perhaps the financial damage to clients would have been substantially less. So who oversees these laws are being adhered to, and who enforces the Corporations Act and the laws?

Reply to article

For original story, Click Here.