ASIC confirms licensee attempt to hire banned adviser

27 April 2020

At least one licensee has attempted to hire a banned adviser and has found his efforts rejected by the checking mechanisms put in place by the Australian Securities and Investments Commission (ASIC).

The regulator has confirmed to a Parliamentary Committee that a licensee attempted to register an adviser who was banned but that the problem was detected by ASIC’s processes.

“ASIC has processes in place to detect this type of event and prevent appointment of banned or disqualified individuals,” the regulator told the Parliamentary Committee.

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“When a licensee submits a request to appoint an authorised representative or financial adviser an automated check is performed by ASIC systems that flags any potential matches with persons currently on the banned and disqualified register,” it said.

“These flags alert an ASIC staff member who manually checks the relevant appointments against ASIC systems. If the check confirms they are not on the banned and disqualified register, the appointment proceeds.

“If the check confirms the person is currently banned or disqualified the appointment is rejected and a notification email sent to the appointing licensee.”

The ASIC answer made clear that it was not unusual for advisers to return to the industry as authorised representatives after their banning had been completed.




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I don't understand why a banned or disqualified person would bother seeking an AR again. Why don't they just continue giving advice without being registered? ASIC's primary focus seems to be on persecuting registered advisers for even the most minor of administrative oversights. They don't seem to care how much harmful advice is provided to consumers by unregistered advice providers.

Advisers need to be an AR in order to collect advice payments via a client's financial products. (A process which is easier and cheaper for both client & adviser). But now ASIC & many product providers are trying to make that process so complex and expensive, it will be easier to just bill clients directly.

This will remove one of the practical incentives for advisers to be registered.

Point well made - a profession with no incentive to be part of it. More incentive to be outside of the profession?

I have proof of banned or disqualified people can register any new company and ASIC didnt notice, even didnt notice or look into the amount of companies that were registered and even many had the same business name except for a .() Aa and &
VID282/2018 STIIL IN COURT WITH OUT ONE CHARGE BEING STILL.
OVER 350 COMPANIES IN CONTROL BUT WORST OF ALL ITS THE SECOND TIME 2010 AND RECENTLY
FRIENDS OF ASIC,,,

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