ASIC confirms licensee attempt to hire banned adviser

ASIC/regulation/financial-planning/

27 April 2020
| By Mike |
image
image image
expand image

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.

“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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 1 week ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

2 days ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

2 weeks 2 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

3 weeks 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5