ASIC gets tough on advisers
The Australian Securities and Investments Commission (ASIC) banned a record 50 investment advisers in 1999/2000, compared to just 17 the year before.
According to the ASIC annual report, the investment watchdog banned 16 advisers for life and the other 34 for a varying number of years.
Nine of the banned advisers are those who led clients into the failed Wattle Group. Fourteen people still face ASIC criminal charges relating to the failed $165 million scheme.
Those banned for life include former Hillross adviser Ian Pavletich, who was convicted of defrauding St George Bank chairman Frank Conroy of $350,000. He was also sentenced to three and half years jail for the crime.
Another high profile banning was WA-based finance broker Graeme Clifford Grubb who was banned over a number of charges relating to the loss of $11 million by 200 investors. Grubb is also now serving a jail sentence for the crime.
The investment watchdog received 5534 complaints from the public, which was up 5 per cent from the previous year. Just under half of those complaints were referred for follow-up inspection. About 80 of these led to an investigation by ASIC.
ASIC also scored more than 20 enforceable undertakings, including Westpac and Suncorp Metway regarding disclosure of commissions and compliance issues.
More than 1000 prospectuses were lodged with ASIC in the year to June 30, a 46 per cent jump on the previous year.
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
