ASIC adviser register will not include licensee actions
The adviser register set to be released by the Australian Securities and Investments Commission (ASIC) will only include actions taken by the regulator and not those of licensees or professional associations.
Appearing before the Parliamentary Joint Committee (PJC) on Corporations and Financial Services, representatives from ASIC - including deputy chair Peter Kell, were asked about the scope of the register with National Party Senator John Williams questioning its ability to track advisers who have moved to avoid scrutiny.
Williams asked if “financial planners who have been forced out, kicked out, forced to resign or they’ve moved on to other institutions” would still be on the registry.
“If people get booted out, sacked, removed, that will surely have to go on the register,” he asked stating that “If all the ticks are on the register and none of the black marks, then it’s misleading.”
In response Kell stated the content of the register was defined by the Federal Government and the register would include information about enforcement actions and bannings undertaken by ASIC but not action taken by licensees against advisers as it may be restricted in covering some of those actions due to natural justice issues.
When asked if professional associations were supplying details of banned members to both licensee and ASIC Kell stated that in most cases of serious misconduct ASIC was notified but it was not mandatory for professional associations to do so.
William also asked about the number of planners within the advice sector and how many would be on the register to which Kell stated “we are unsure how many are out there providing advice as they have been slowing coming in the door. We expect a last minute rush and in a few weeks we should know down to the nth degree.”
ASIC was also unable to answer whether AMP and the ‘big four banks’ controlled 80 per cent of advisers with ASIC chair Greg Medcraft stating it would supply the data to the PJC.
The 2014 Money Management Top 100 Dealer Group Survey indicated that number to be lower with AMP, ANZ, CBA, NAB and Westpac controlling around 60 per cent of financial advisers and with total institutional control of advisers around 72 per cent of the advice sector.
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