The financial services regulatory framework should include a positive duty on the finance sector to prevent harm from financial abuse.
This is one recommendation included in Flequity Ventures’ submission to the Joint Parliamentary Committee on Corporations inquiry into the financial services regulatory framework in relation to financial abuse.
In her cover letter, Flequity Founder and Director Catherine Fitzpatrick said:
“In my view, the Committee should recommend that Safety by Design is embedded in the financial services regulatory framework with a positive duty on the finance sector to prevent the misuse of their products and services to cause harm.
“At the very least, it should make clear that this risk – which could, in the worst cases, lead to death of a customer – is material and foreseeable and should be considered by Directors as part of their duty of due care and diligence.”
You can read the submission here.