There have not been any determinations by the Financial Services and Credit Panel (FSCP) for over three months.
According to ASIC’s FSCP Outcomes Register, the last determination was made on 13 May. This is the longest period without a determination since the body came into force at the end of 2022.
This most recent determination was regarding superannuation switching where the relevant provider gave advice to two clients in relation to insurance and superannuation, having been referred them by a third-party superannuation switching cold calling operation, for which they received soft benefits under a commercial agreement.
The panel issued a written direction that the relevant provider received specified supervision, engaged an independent person with expertise in financial laws compliance to pre-vet and audited the next 10 SOAs that include a recommendation in relation to insurance; and the next 10 SOAs that include a recommendation in relation to superannuation, that the relevant provider intended to present to a retail client.
Prior to this, there had consistently been determinations in January, February, March, April and May 2024. The first ever determination was made in May 2023, and there were 12 determinations made by the FSCP for the rest of 2023.
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 including:
- Insolvency
- Fraud
- Not a fit or proper person
- Contravention of education and training standards
- Failure to approve a Statement of Advice
- Provision of personal advice by an unregistered financial adviser
- Serious contravention of a financial services law
- Involvement in serious contravention of a financial services law
- Refusal or failure to give effect to an Australian Financial Complaints Authority determination.
In the same period, there were nine bannings of financial advisers and nine separate cancellations or suspensions of Australian financial services licences (AFSLs) by ASIC.
This included a 10-year ban for United Global Capital director Joel James Hewish in Melbourne, a five-year ban for NSW adviser Christopher Luff, and a permanent ban for Queensland-based former financial adviser Anass Abdalla.
The FSCP guide states: “ASIC will continue to exercise our own banning powers. However, we may consider delegating our banning powers to a sitting panel, for example, where we consider a matter is appropriate for review by both industry participants and ASIC staff because of its significance, complexity or novelty, and the misconduct may warrant the imposition of a banning order.
“We will not, and are not required to, convene a sitting panel in circumstances where we seek to exercise our own banning powers.”
Meanwhile, AFSL alterations included a cancellation for Sug Ou Jeung and Aussie Wealth Super, and the suspension of Responsible Entity Services.
