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.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.