ASIC bans director for failure to pay AFCA determinations
The Australian Securities and Investments Commission (ASIC) has banned a Sydney director for three years with his two firms having previously received complaints regarding inappropriate financial advice.
Peter Godfrey Gribble of Sydney, NSW was banned from controlling an entity that carries on a financial services business and performing any function as an officer of an entity carrying on a financial services business for three years.
Two companies of which he was director, Qsmart Securties and Quantum Funds Management, refused or failed to give effect to determinations by the Australian Financial Complaints Authority (AFCA).
In 2020, AFCA made a total of seven determinations against Qsmart and Quantum in response to complaints relating to unauthorised trading and disclosure failures, as well as inappropriate financial advice and other misrepresentations provided by credit representatives.
These determinations directed those entities to pay consumers a total amount of approximately $2.5 million.
ASIC deputy chair, Sarah Court, said: ‘Directors of AFS licensees must ensure that their firms comply with AFCA determinations. This is a fundamental obligation of AFS licensees, and crucial in ensuring that Australia’s financial dispute resolution system remains efficient and effective.’
ASIC found that Gribble, as director of Qsmart and Quantum, approached AFCA determinations as if they were open to negotiation, including in some circumstances seeking to persuade complainants to accept less than the determination amounts.
“AFCA determinations are not opportunities for negotiation. Directors of AFS licensees must make sure that their firms comply with AFCA determinations within the time specified. If directors try to avoid this obligation, we will take steps to remove them from the financial sector.”
Mr Gribble’s banning order took effect from 6 October, 2022 and did not prevent him from seeking to be authorised to provide financial advice
He had the right to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.
AUTHOR
Laura Dew
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
Add new comment