The compensation bill for sub-standard financial advice has topped $140 million so far, with a long way still to go. And that’s just for the six largest financial institutions, who’ve all been caught up in the initial fallout from the Royal Commission. Inevitably, most advice firms will have some inappropriate or non-compliant advice in their back books that’ll need to be put right.
With risk and compliance talent in short supply, remediation often screams spiraling recruitment and project costs. But we don’t think it needs to be that way. In our experience, smart businesses know that tackling remediation projects the right way can be good for commercial success.
Here’s a few reasons why:
Swift remediation will secure your reputation
Since the Royal Commission closed, we’ve seen a steady stream of reports of financial planners banned from the industry and various scandals in the wealth management arms at the big banks. Scathing media coverage and negative public opinion is taking its toll on the industry.
We helped UK firms through the financial crisis over a decade ago. And from what we’ve seen over the years, firms that get remediation right first time are much less likely to suffer long-term reputational damage. Delivering fair outcomes for your customers, while providing the best experience possible, is your chance to rebuild trust and enhance customer loyalty for the future. Not only that, but you’ll be showing ASIC that you’re a transparent business, committed to putting customers first. With your reputation secured, you can continue on the path to commercial success.
Turning compliance into opportunity
No business wants to admit they got it wrong. But reviews and remediation projects will almost always unearth the gaps and weaknesses in your systems, processes and controls that caused the problem in the first place. So it’s important you pay attention to them. This is valuable insight, and your opportunity to do things better. By using this intel smartly, you could reduce your future risk and create more efficient processes, saving you time and money further down the line.
Partnering with an expert can help you get it right
Internal compliance teams are often too busy to make the most of remediation. Once the project is done and dusted, they’re busy putting out the next fire. That’s where we come in. Outsourcing your remediation to an independent expert means you’ll get insightful, actionable next steps once a project has finished. Plus, you’ll benefit from our years of wider industry experience and regulatory exposure.
Better yet, we can deliver remediation projects twice as fast and more cost-effectively than other providers. How? Not only do we have an extensive pool of skilled and qualified contractors at our fingertips, but our groundbreaking tech means we’re 85% more efficient than traditional remediation processes.