AFA recommends seven-year wrong-doer’s register

The names of people in the financial services industry sanctioned by the Australian Securities and Investments Commission (ASIC) should sit on a register for seven years, according to the Association of Financial Adviser (AFA).

The AFA has used a submission responding to a Treasury consultation paper on ASIC banning powers to suggest the seven-year register move as a measure that actually stops short of a banning or an enforceable undertaking.

While supporting the broad thrust of the Treasury consultation paper recommending stern action against senior executive wrong-doers in the financial services industry, the AFA pointed to the usefulness of having names sit on a register.

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“We believe that ASIC should have broader powers to ban people from managing financial services businesses where they have been the subject of a banning order,” the submission said. “Such powers need to be used appropriately and subject to the provisions of natural justice so that people have access to a hearing and an appeal.”

“In addition to the proposals in this consultation paper, we also recommend that ASIC should have the ability to sanction people in the financial services and credit industries, with these sanctions being recorded on a public register for seven years,” the AFA said.

It said this would enable ASIC to take action against individuals “that is of a more moderate nature, rather than being limited to banning or enforceable undertaking actions”.

“This information would also be available to new employers/licensees and useful in the consideration of recruitment/appointment decisions,” the submission said.




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