The Financial Planning Association's (FPA's) independent disciplinary body, the Conduct Review Commission has imposed a $50,000 fine plus costs on former member, Sam Henderson, for breaches of the FPA's code of conduct.
The FPA acknowledged that Henderson, who appeared before the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry is no longer a member of the organisation.
Henderson was found guilty of nine breaches of the code.
Commenting on the outcome, FPA chief executive, Dante De Gori said the FPA Code required members to put their client's interests first and the CRC had ruled that Sam Henderson did not place his client's interest first or provide professional service objectively, and imposed sanctions accordingly.
Comments
Too little too late for the FPA. If it wasn't for the RC we all know he would simply have been censured.
a mere drop in one's ocean
More publicity for Sam. Where is he now and what is the FPA doing about the legacy he has left for clients?
WTF? it's November 2018. This complaint was lodged almost 2 years ago now. The Royal Commission unearthed some very poor behaviour on behalf of the the FPA and it's CEO. The FPA has very much set back the Financial Planning industry decades by it's poor conduct. The words of Justice Haynes describing the FPA is just shameful. Yet the FPA is still silent on this issue. The first release to members stated "Financial Planners have some work to do" mmmm pot calling the kettle black.
Surely, they've lost the right to hold the distrubution rights to the CFP mark in this country.
What incentive is there for Mr Henderson to pay the fine given that he is no longer a FPA member? Will the FPA and do they have the powers to enforce the fine?
As Phil says earlier, seems to be smoke and mirros in seeing to be doing something post RC but the FPA is in a difficult position regarding Mr Henderson. Needs to be seen to be doing something but whatever it does is trivial given that the horse has well and truly bolted
"simply censured"? More likely there would have been no investigation, no action.
And now how will FPA enforce their determination? And what real effect does it have?
What the FPA should be grilled about is why Henderson was allowed to resign / leave the organisation while under investigation. No organisation that I have been a member of would (a) allow a resignation to take effect while a member was under investigation, or (b) continue an investigation after allowing the member to resign. It's either they've resigned good riddance, or we want to formally find them guilty and expel them.
As it is reported, it appears that Henderson were still a member he could pay the fine and continue unaffected by the disciplinary action.
Not quite right Ian. The investigation started well before a RC was announced. A member can resign whenever they want, you can't make a person subscribe to a service - it's the law. But it doesn't affect any of the rights of the FPA to continue to investigate and discipline the member including, for the record, expelling them retrospectively. As for the fine...yep...good luck collecting that!
Agree that a member can resign anytime they wish. However, an organisation is under no OBLIGATION to accept a resignation -- which in turn allows the organisation to complete an investigation and expel a member if the investigation outcome so justifies.
More concerning with what is reported is the implication that Henderson, if still a member, could pay the "fine" and continue using FPA's recognition.
Yes you're right about an organisation not having to accept a member's resignation. In Sam's case he is "no longer a member"because he allowed his membership to lapse. The FPA botched this aspect up because they should have enforced him maintaining his membership under the constitution but did not and sent him the usual automated renewal letters stating that if he didn't pay his membership then his membership would lapse hence...he did...I would too. The professional accountability and conduct regime of the FPA is farcical.
I have just fined the FPA $50,000 for their crap performance. I don't think they will pay my fine though, as it carries just as much weight as their fine against Mr Henderson.
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