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Terms of Reference
On 25 February 2009 the Parliamentary Joint Committee on
Corporations and Financial Services resolved to inquire into and report by 23
November 2009 on the issues associated with recent financial product and
services provider collapses, such as Storm Financial, Opes Prime and other
similar collapses, with particular reference to:
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the role of financial advisers;
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the general regulatory environment for these products and
services;
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the role played by commission arrangements relating to
product sales and advice, including the potential for conflicts of interest,
the need for appropriate disclosure, and remuneration models for financial
advisers;
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the role played by marketing and advertising campaigns;
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the adequacy of licensing arrangements for those who sold
the products and services;
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the appropriateness of information and advice provided to
consumers considering investing in those products and services, and how the
interests of consumers can best be served;
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consumer education and understanding of these financial
products and services;
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the adequacy of professional indemnity insurance
arrangements for those who sold the products and services, and the impact on
consumers; and
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the need for any legislative or regulatory change.
On 16 March 2009 the Senate agreed that the following
additional matter be referred to the Parliamentary Joint Committee on
Corporations and Financial Services as part of that committee's inquiry into
financial products and services in Australia, adopted by the committee on 25
February 2009 for inquiry and report by 23 November 2009:
The committee will investigate
the involvement of the banking and finance industry in providing finance for
investors in and through Storm Financial, Opes Prime and other similar
businesses, and the practices of banks and other financial institutions in
relation to margin lending associated with those businesses.
In conducting its inquiry, the Committee made a decision to
focus specifically on non-superannuation products and services.
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