SOAs flagged by FSCP for second time in a month
The latest Financial Services and Credit Panel (FSCP) outcome has been issued for a problem relating to Statements of Advice, the second relating to this matter in a month.
This related to advice given to five clients between June 2022 and August 2022 where no Statement of Advice was provided.
The requirement to give a Statement of Advice is covered in section 947b of the Corporations Act.
In a brief summary, the FSCP issued a written reprimand as it contravened both the Corporations Act and the code of ethics.
“The sitting panel determined that it reasonably believed that the relevant provider contravened s946A(1) and s921E(3) of the Corporations Act 2001 when they failed to give statements of advice to five retail clients between June 2022 and August 2022.
“In giving the advice, the relevant provider failed to demonstrate the code of ethics’ values of competence and diligence and breached standard one of the code of ethics.”
This is the second FSCP outcome in a month as one last week related to a relevant provider providing advice in Statements of Advice recommending they rollover their superannuation to a more expensive product.
However, no action was taken on that case as the sitting panel ruled the matter contravened the code of ethics but not the Corporations Act.
In total, there have been six FSCP outcomes related to Statements of Advice since the introduction of the FSCP last year.
AUTHOR
Laura Dew
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.
Add new comment