Call for Compulsory Compensation Scheme Up Due to Financial Misconduct Reports
Investors and their families are experiencing “catastrophic” losses due to financial misconduct of people who use bad advice, fraud, misleading information, and deceptive conduct. This was found out by the government’s investment watchdog.
In a research released by the Australian Securities and Investments Commission, it was found out that prolonged anger and depression in victims are among the impacts of financial misconduct and bad advice. Long-term impacts have also been found.
According to ASIC Consumer Advisory Panel Chair, Jenny Mack, “This research highlights the very real social costs of investor losses following misconduct by financial advisers.”
Most investors were not able to fully use or access compensation schemes supposed to compensate financial misconduct or losses. This was also found in the research.
Christopher Zinn, Spokesperson of CHOICE, said that the report reinforced its campaign for a compulsory compensation scheme in Australia. Compensation scheme includes bonuses and other payments that are used to compensate workers for their services in relation to their performance. It is also a means of motivating the workers towards the achievement of the company’s goals.
“There are some very real and personal stories about the impact on people’s lives. It’s not just a story about millions of dollars of losses but also about people living in caravans, marriage break downs and the very real personal cost caused by financial advisers and service providers doing the wrong thing,” he added.
The scheme, according to Zinn, is not for compensating “poor decision-making but compensating people against wrongdoing by licensed people in a regulated industry”.
For the time being, these victims of financial misconduct can slowly gain back their losses by availing loans at very affordable interest rates. Instant cash loans are available to Australians who are having a financial difficulty. Easy payday loan has very minimal and simple requirements that can definitely lead the way to instant cash for the borrower.
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Source : http://www.news.com.au/money/investing/high-cost-of-bad-advice-for-investors/story-e6frfmdr-1226059385832
