Effectiveness of FPA sanctions to be put to test
The ability of the Financial Planning Association (FPA) to sanction its members will be put under the spotlight when it finally announces what sanctions and penalties will be applied against financial planner, Sam Henderson, who was this week determined to have breached the organisation’s Code of Professional Practice.
While Henderson was found by the FPA’s Conduct Review Commission to have been guilty of eight out of 10 alleged breaches, it has not yet been determined what penalty will be imposed.
The CRC’s official finding said that the panel made “no determinations in respect of costs and out of pocket expenses of the FPA at this stage”.
However, it said it reserved the question whether to make any such determination for further submission and said it was providing “the parties with an opportunity to make submissions as to the imposition of any sanction, in a manner and within the times that are to be advised”.
“Such submissions may also address the costs and expenses of the FPA,” the CRC determination said.
The alleged failures of Henderson dealt with by the CRC were also aired during the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, which heard that Henderson had actually resigned his membership of the FPA.
In circumstances where a planner is no longer a member of the FPA and may no longer be working in the planning industry, questions are being raised about the ability of the organisation to impose sanctions or to recover costs.
Recommended for you
It can be extremely hard to realise the gains from financial advice M&A, according to Peloton Partners’ Rob Jones, and more could be gained from firms looking inward at their own practice.
With platforms reporting their quarterly results, there is a clear divide in the adviser markets they are targeting, according to platform specialist Recep Peker, and which would be right for your clients.
The Federal Court has imposed a $10 million penalty on Macquarie Bank for failing to prevent and control unauthorised fee transactions by third parties including financial advisers.
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.
