FSCP determinations ramp up in H1 25

From non-concessional contribution cap errors to Code of Ethics breaches, Money Management has collated the Financial Services and Credit Panel (FSCP) determinations from the first half of 2025.

The FSCP is a pool of industry participants, appointed by the responsible minister, that ASIC draws upon when forming individual sitting panels. It operates separately from, but alongside, ASIC’s existing administrative decision-making processes.

A sitting panel will be convened by ASIC to consider certain suspected misconduct by, or circumstances relating to, a financial adviser such as if it reasonably believes a financial adviser is not a fit and proper person to provide advice or a financial adviser becomes insolvent under administration, and ASIC is aware of this.

In the first half of 2025, there were nine actions taken by the panel, compared to five in the same period a year ago, and 13 across the whole 2024 calendar year. Only one of the nine saw no action taken against them, four received written directions, three received reprimands, and one received a written order.

Below, Money Management rounds up the action taken in the last six months. 

January 

Kicking off the year, a financial adviser, anonymised as Mr D, received a written direction after a concessional contribution cap error led a client to exceed the cap by $15,000. The panel also found that Mr D did not demonstrate the FASEA Code of Ethics’ value of diligence and failed to comply with Standard 5. 

As a result, Mr D was ordered to undertake “at least five hours of continuing professional education covering retirement planning in the next 12 months” on top of his existing CPD obligations.

February

Glenn Paul Meilak, an adviser and director of Definitive Wealth Management in Padstow, saw his registration as a relevant provider cancelled in February by the FSCP’s sitting for two years.

He was the only individual to be named during the period, and one of only two individuals to be named since the start of 2024.

The action was taken after the panel found he had recommended clients set up self-managed superannuation funds, stating he had exhibited conduct that was “systematic, displayed a lack of care and a level of incompetence in providing advice to his clients”. According to the panel, Meilak had contravened the best interest duty, appropriate advice obligations, failed to prioritise his clients’ interests over his own, and made misleading statements.

March

The end of Q1 saw an adviser, identified as Mr U, receive a written direction from the FSCP after incorrect advice led to a client making a non-concessional contribution (NCC) of $299,000 for the 2022–23, failing to take into account a $300,000 NCC in the previous financial year.

Due to the advisers’ mistake, the client had to withdraw $330,221.68 from their superannuation and incurred additional tax liabilities of $5,552.58 on associated earnings.

Finding Mr U had not complied with the Code of Ethics’ value of diligence and had breached Standard 5, he was required to engage an independent person with financial services compliance expertise to audit his next 10 pieces of advice.

April

Two weeks later, the FSCP reviewed concerns that an adviser had failed to complete their 40 hours of continuing professional development (CPD) requirement within their licensee’s CPD year. However, the panel decided that “no action was warranted because of the extenuating circumstances that led to the non-compliance”.

In another case regarding NCCs, the FSCP found that a relevant provider had contravened sections 961B(1), 961G and 921(3) of the Corporations Act, breaching the Code of Ethics and Standard 5.

The panel found the individual had advised a client to make contributions in FY2021–22 and FY2022–23 while failing to take into account that they were already in year two of a three-year “bring forward arrangement”.

As a result, the individual was ordered to engage a financial services compliance expert to audit their next 10 pieces of advice that include a recommendation in relation to superannuation contribution or recontribution that are designed to take advantage of certain tax and super provisions to maximise tax benefits.

May
Jumping ahead to May, the FSCP was convened after a provider was found to have given advice in June 2022 recommending a client make a super NCC of $145,000 for FY2022–23. However, this failed  to take into account that the client had previously received advice in February 2021, by another adviser authorised by the same AFS licensee as the relevant provider, which recommended the client make a lump sum NCC of $299,000 in the 2020–21 financial year. 

That triggered a “bring forward arrangement” which reduced the client’s NCC cap to $1,000 for the next two financial years.

In a second incident, two relevant advisers were investigated after failing to comply with their CPD requirements of 40 hours per week. In both cases, a reprimand was issued to emphasise the importance of CPD to maintaining the standards of the profession as well as public trust and confidence. 

June

Closing out the financial year with one determination in June, the FSCP issued a written direction to an adviser who recommended three clients switch their super and invest in a product “associated with the relevant provider”.

Among multiple problems included a conflict of interest, failure to obtain informed consent, failing to disclose the benefits they would receive as a result of the investment, and a failure to ensure the fees and charges were fair and reasonable. 

In response to the contraventions, the FSCP required the relevant provider to report to ASIC on a range of specified matters by 31 October 2025.