The Financial Services Council (FSC) has expanded its mandate to directly engage investors with the launch of a new trustmark.
FSC chief executive John Brogden announced the new initiative at the FSC conference in Melbourne earlier today.
"From 1 January 2012, the financial services trustmark can be used on your products and with your services on your website and your documents," Brogden said.
"Like the heart foundation 'tick' denoting quality, our trustmark will send a clear message to consumers. When consumers see the financial services trustmark they will know they are choosing a quality product, a product that has been issued by an FSC member company.
"It is committed to high standards set and administered by the Financial Services Council - standards that are above and beyond legislation."
To qualify for the trustmark, FSC members are required to provide an annual compliance statement by 30 September setting our their compliance with the FSC standards, Brogden said.
"They must adopt a resolution by the board of their company stating they are satisfied that the company has complied with the FSC standards," he said.
"The compliance statement is then signed by a member or representative of the board, and by using the trustmark on a financial product or in relation to financial advice, the companies and its directors are making representations of their clients with compliance to our standards."
As part of the new trustmark, the FSC's standards, oversight and disciplinary committee will have increased powers to review the compliance of an FSC member product and service that holds the FSC trustmark.
"We will introduce new powers to allow the standards, oversight and disciplinary committee to require risk and compliant-based external audits to ensure compliance with our standards," Brogden said.
