Ethics Centre among beneficiaries of left-over remediation payments

The Ethics Centre has been a beneficiary of a practice adopted by the Australian Securities and Investments Commission (ASIC) which has seen surplus/residual remediation funding directed towards consumer and charity groups. 

ASIC has admitted to a Parliamentary Committee that in circumstances where remediation funds have not been capable of being returned directly to affected consumers they are directed at ASIC’s discretion to “appropriate recipients”. 

Answering a question on notice, the regulator said that from time to time it monitored consumer remediation programs conducted by firms. 

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“Sometimes these programs include a residual payment where funds could not be returned directly to affected consumers, so instead a residual payment was passed by the firm on to an appropriate recipient to be used to provide services, information or education to consumers of a type that may be affected by the misconduct,” it said. 

“In these situations the underlying principle is that a firm should not benefit from the profits of their breach. In both these circumstances, the firm directly pays the relevant recipient. 

“Examples of recipients who have received payments under either a CEU and/or residual remediation payment include: 

* Ecstra Foundation 

* Financial Literacy Australia (wound-up) 

* The Financial Counselling Foundation 

* The Ethics Centre 

* Smith Family 

* Brotherhood of St Lawrence 

* Salvation Army 

* Cerebral Palsy Alliance 

* Dementia Australia 

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You have got to be kidding! The deceptively named "Ethics Centre" and its hypocritical CEO are the biggest beneficiaries of FASEA corruption. They make money from ethics training courses and textbooks, and have abused their position on the FASEA Board to force all advisers to pay for vast amounts of additional ethics training. Even though many advisers have studied ethics at tertiary level before, hardly any credit for prior learning was granted. And they have enshrined a higher component of ongoing ethics training in FASEA's CPD rules than any other subject area.

The "Ethics Centre" should be the subject of a corruption inquiry. They shouldn't be the beneficiaries of ASIC largesse.

A reward for Longstaff who has saddled us with excessive CPD including a ridiculous 9 hours per year in ethics, and also forcing all advisers, including those with approved degrees and masters in financial planning to go back to university for study a course in ethics. ASIC would have been delighted with those little gems. Here's an idea, rather than rewarding their mates, perhaps these payments should be directed to the victims of financial crime, many of which have occurred because ASIC has put little effort into early detection and consumer warnings, and instead pursued their obsession with persecuting honest hard-working advisers who recommend low risk, mainstream investments with client satisfaction levels which rival the most trusted professions.

Its not ethical to take money like this surely they would be better off with smith family than these guys that are ALREADY rich! The Ethics centre dosent need funding! You wouldnt write a story like this guys, its unbelievable. How does the ethics centre compare to the salvos in terms of requiring funding? The salvos help poor people, they struggle and knock on doors for money, spare change, the ethics centre charges an arm and a leg for presentations, courses, to sit on boards etc etc, and helps no one but themselves. These guys at the ethics centre are rich as, they live in the lap of luxury, probably on over 300K a year or more! Geeuz ASIC what the hell are you playing at? Royal commission into this organisation coming

Far out! I guess nothing surprises me. What is ethical about this? Bit like having your own book on the reading list for FASEA, or advisers pushed into your own university courses. This whole thing is a mess.

This would be funny if it wasn't so sad. Here they are:

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