Adviser bannings are trending up, says ASIC
The Australian Securities and Investments Commission (ASIC) has told a Parliamentary Committee that there has been an upward trend in the banning of financial advisers.
The regulator has told the Parliamentary Joint Committee on Corporations and Financial Services that over the last three years there have been 103 financial adviser bannings, with the deputy chairman, Peter Kell saying “the trend has been upwards”.
Outlining the adviser bannings, Kell said there had been 25 in 2014-15, 37 in 2015-16 and 41 in the year to date, 2016-17.
“Those were bannings and also leaving the industry as a result of enforceable undertakings or civil action,’ he said.
“It has been a busy area for us, and an important area for us, as we deal with those advisers who have been causing problems,” Kell said.
The ASIC deputy chairman then referenced an announcement in early June relating to a Westpac adviser.
“He was banned for five years and there was around $1.5 million in refunds provided, and there is a lot more in the pipeline,” Kell said.
He said the data indicated that ASIC had been very active in the financial adviser space and it remained a major area of focus for the regulator.
Recommended for you
Single adviser-led firms continue to expand their footprint in the Australian advice ecosystem, Adviser Ratings research shows, as market conditions prove favourable for boutique practices.
With HNW investors representing the largest market for alternative assets, Praemium and CoreData research underscores why this presents a compelling opportunity for advisers.
Having completed the successful integration of Diverger, Count has upgraded its forecast for expected synergy benefits achieved by the acquisition by a third.
Australia’s largest licensee has seen the biggest number of adviser losses over the past week, while the expected wave of new entrants has boosted overall adviser numbers.
