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.

Related News:

“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:

  1. Employed or authorised by AFSLs to provide general advice, and
  2. With the responsibility or ability to influence the advice process, and
  3. In management and directorships, including responsible managers.



Recommended for you

Author

Comments

Comments

Advisers, advisers, advisers - what about the execs and Managers??? How many Execs responsible for the sales boiler room, shocking compliance, disregard for clients best interests and bad culture at the major Banks that have yet to be held responsible jumped ship to other Licensees to continue their carnage elsewhere???

Agree with your comments

Agreed and the advisers all know who they are too. They jump from one licensee to another , taking their cronies with them and their toxic culture

They should probably look at the issue that the senior managers/directors overseeing the advisers, controlling the APL, CRM , documents for the advisers, training and compliance can receive lucrative remuneration packages if the advisers they oversee sell their in-house products/portfolios. The advisers can’t receive these type of benefits based on FUM funnelled into the licensee own product but the senior managers / directors can

And then there are all those senior bank executives who have moved to industry funds. I hope the staff are prepared for a culture shock and certainly not for the better! A prove track record of incompetence must be a pre requisite for managers in financial services.

with markets in a tailspin due to the covid-19 virus, and now the oil shock, ASIC should introduce more and new regulations for financial planners.

i think a new requirement to hold SoA and RoA ceremonies should be introduced stat.

That would only work if your advice was the same for every client, no?!

Add new comment