Morgan Stanley 'named and shamed'

August 27, 2018

 

 

The conduct regulator has called out Morgan Stanley Wealth Management Australia (MSWMA) for their use of the word ‘independent’. 

 

Earlier this week, the Australian Securities and Investments Commission (ASIC) said that under the s923A in the Corporation Act terms like ‘independent, impartial or ‘unbiased’ can only be used by an individual who is not paid commissions, volume based-payments, gifts or any benefits. 

 

“Advice firms need to have adequate processes and controls in place to ensure any public statements they make comply with the Corporations Act.”


 The regulator said that the MSWMA does accept volume-based payments and commissions.


They are just the latest firm that provides financial advice to be publicly named breaching the prohibited term obligation. 


“Ensuring transparency and accuracy in disclosure are important components of ASIC’s ongoing work to improve standards in the financial advice industry.”
 

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