How many banned advisers have moved into advice management?
The Financial Planning Association (FPA) has asserted it has clear evidence of financial advisers who have been banned by the Australian Securities and Investments Commission (ASIC) but who have moved into management overseeing the provision of advice.
The FPA’s assertion has been made in its submission to the Treasury dealing with the implementation of the Hayne Royal Commission recommendations and has resulted in it recommending that managers should also be the subject of reference checking and information sharing protocols.
It said that, as things currently stood, the protocol will only apply to financial advisers who will potentially be providing personal advice to retail clients under the new licensee.
“Evidence provided at the Royal Commission and discussed by Commissioner Hayne in his final report included potential misconduct in relation to representatives providing general advice, directors, management and other employees of AFS licensees,” the FPA submission said.
“The FPA has clear examples of financial advisers who have been banned from providing financial advice by ASIC who move into management overseeing the provision of financial advice by employed or authorised financial advisers of the licensee.”
“The FPA recommends the Reference Checking and Information Sharing Protocol should therefore be extended to include individuals:
- Employed or authorised by AFSLs to provide general advice, and
- With the responsibility or ability to influence the advice process, and
- In management and directorships, including responsible managers.
Recommended for you
With AFCA urging financial advisers to report instances of misconduct, Assured Support has broken down the red flags to be aware of in your own business.
The Federal Court has made orders freezing the assets of an individual allegedly associated with marketing Shield and First Guardian Master Funds.
The FAAA and other industry groups have responded to ASIC’s proposed relief under the reportable situations regime, making several recommendations to reduce “unnecessary regulatory burden”.
ASIC has applied for Falcon Capital to enter liquidation in the Federal Court as it continues its investigation regarding allegations customers were encouraged to roll over their super into its First Guardian fund.
