It is imperative that legislation be reworked so that all product providers are supervised and accountable. Wharton-Hood is irritated by the Nel Commission of Inquiry which was set up to investigate the Masterbond saga. This commission has missed the boat completely. Instead of recommending that all such schemes fall under an authority, it is heaping the blame on brokers, saying it is the job of intermediaries to vouch for the product provider. Wharton-Hood says the association will lobby the government and various authorities to see to it that the matter is addressed urgently.
Someone has to get the bit between their teeth.
He says the association will continue pushing for the various regulations that apply to the life assurance industry through the Financial Services Act to be extended to cover all financial service providers such as unit trusts, participation bonds and tank containers. A false impression has been created that we are opposed to being regulated through the Financial Services Act, which has yet to be drafted. This is absolutely not true. We are the only industry that has pushed for legislation. However, we want the same rules to apply to all financial service providers.