ASIC provides financial adviser enforcement update

The Australian Securities and Investments Commission (ASIC) has confirmed 10 financial advice misconduct criminal cases are before the courts with six civil cases also yet to be decided.

In an enforcement update, the corporate regulator reported four civil financial advice misconduct cases and two administrative cases were concluded in the six months between 1 July and 31 December, 2021.

Meanwhile, one civil case relating to insurance misconduct had been concluded in the time period as well as six civil superannuation cases, two criminal superannuation cases and one administrative superannuation case.

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Overall, a total of 32 financial services enforcement matters had concluded in the same period with 28 financial services criminal cases and 48 civil cases before the courts.

“During this period, ASIC continued to act against misconduct to maintain trust and integrity in Australia’s financial system and promote a fair, strong and efficient financial system for all Australians,” ASIC said in a statement.

A total of $84.3 million in penalties were imposed in the six-month period, which included penalties against National Australia Bank, superannuation trustees, asset management companies and managed investment schemes.

ASIC confirmed 99 people or companies were prosecuted for strict liability offences, 21 people or entities were removed or restricted from providing financial services or credit and 31 people were disqualified or removed as directors of companies.

A further six people were given custodial sentences and 10 people or companies were given non-custodial sentences.

The corporate regulator said period also marked the filing of ASIC’s last civil proceeding stemming from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Financial Services Royal Commission).

All of ASIC’s Financial Services Royal Commission investigations were now complete, with 10 proceedings still before the courts. In total, ASIC brought 24 civil and criminal cases based on matters raised at the Financial Services Royal Commission (with one additional criminal matter currently under consideration by the Commonwealth Director of Public Prosecutions).




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