Will ASIC’s disciplinary actions exceed the 2019 peak?
The 2025 calendar year has already seen almost 20 advisers banned or disqualified by ASIC, and if this trend continues, the count could exceed the royal commission-era record.
According to an analysis by Wealth Data founder Colin Williams, the 2025 calendar year has already seen 18 advisers banned or disqualified by ASIC, and with five months of the year still to go, he believes we could see a new high for the post-royal commission era.
In the wake of the royal commission, there were 34 ASIC disciplinary actions (DAs) affecting advisers in 2019, while 2017 and 2018 had both seen 26.
Since 2020, however, numbers have averaged at 15 per year, with the most being 23 in 2021 and the lowest being 12 in 2022 and 15 in 2023, but this is starting to tick up this year with one FSCP action and 17 bannings/disqualifications so far.
“Given 2025 is currently at 18, and continuing uncertain events in the wealth/adviser market, 2025 could well be on track to end up above the 2019 figure,” Williams said.
What is particularly concerning is the number of DAs are being taken against a far smaller number of advisers nowadays. In 2019, there were 34 actions taken in an industry of 27, 925 advisers, while the number of advisers currently has fallen to 15,535 yet there are already 18 DAs year to date.
|
Year |
Banning and disciplinary actions |
|
2017 |
26 |
|
2018 |
26 |
|
2019 |
34 |
|
2020 |
17 |
|
2021 |
23 |
|
2022 |
12 |
|
2023 |
15 |
|
2024 |
16 |
|
2025 YTD |
18 |
Source: Wealth Data, ASIC
While the profession desperately needs to hold on to as many advisers as it can, Williams found that, for better or worse, most are unlikely to return from an ASIC discipline.
“Most of the affected advisers are no longer listed on the FAR. Since 2015, 217 advisers have been affected by a DA. Only 15 are still ‘current’. Two advisers with DAs in 2025 remain current despite recent bans. This is probably a timing delay, and they will likely soon be removed from the FAR,” he said.
Looking at some of the actions taken over 2025 so far, the regulator kicked off the year in February with a permanent banning of Queensland financial adviser Lachlan John King after he was found guilty of misappropriating $1.8 million from his clients, which included family members.
Flicking forward to March, Grant Richard Thomson was hit with a five-year ban for failing to provide appropriate advice that was in the best interest of his clients. An ASIC review revealed Thomson had recommended levels of insurance cover that incorporated mortgages the clients were yet to obtain.
In May, former Perth adviser Neville Allan Kendrick received a permanent banning from ASIC after it was found he had made “materially misleading” statements to induce investors. On top of this, Kendrick had also been providing financial services when he was not licensed or authorised to do so.
Most recently, Matthew Allen Beresford of Thornbury, Victoria, was permanently banned from engaging in financial services and credit activities after it was found he had illegally provided financial advice which led to investors depositing $374,000 into his bank accounts.
Beresford was found to have used a false identity and fraudulent bank accounts to illegally establish a financial advice and financial services practice.
AUTHOR
Shy-Ann Arkinstall
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