In a statement to the market, the corporate regulator stated it would crack down on select operators in the advice sector in the form of an industry review.
During 2011, ASIC said it would look closely at, among others, licensees that may run 'lite touch' business models.
As part of the review, the corporate regulator said it would visit the licensee's business and essentially "kick the tyres" to see how well they were complying with their licence conditions, and check over the advice being provided to clients.
The review would also look at one-size-fits-all business models adopted by licensees as well as inadequate or poor-quality compliance resources.
ASIC said it would also look at the quality of advice provided by licensees to clients.
"Where we have concerns about the appropriateness of advice provided to clients we will review client advice files ourselves and/or require the licensee or an external auditor to audit the quality of advice provided," it said.
"Where the licensee or an external auditor conducts the file audits, we will conduct random spot checks on the quality of those audits."
News of ASIC's renewed push has already hit the marketplace, with more than a few murmurs that a number of licensees are feeling the heat of the corporate regulator.
No doubt for many within the advice sector, such a public announcement from the industry regulator will be seen as a positive, and perhaps be perceived by 'wrongdoers' that they better shape up or quit the industry.
Though what I don't understand is why does ASIC have to make such a song and dance about its review? Why isn't the regulator's review of the industry or at least monitoring of the industry a constant duty?
I have no doubt ASIC's latest declaration to the industry that it will be the sheriff and clean up the town will be met with a series of eye rolls.
One way or another we've all witnessed the lacklustre actions of ASIC, which have in part resulted in corporate collapses such as Westpoint, Opes Prime and Storm Financial, so how ASIC believes it can suddenly put a stop to unscrupulous operators is really anyone's guess.
