Concerns raised about backdated adviser resignations
There are concerns regarding the backdating of adviser registrations on the Financial Advisers Register (FAR) as smaller licensees close with backdated resignation dates.
According to Wealth Data, there were 11 licensees which were down to zero advisers and had ceased during the week to 1 December.
All but one of these licensees had adviser resignation dates which had been backdated to 1 January, 2022.
Wealth Data founder, Colin Williams, said: “It does raise some glaring concerns into the current AFSL reporting system, for allowing many advisers to remain on the FAR for so long.
“Obviously, some advisers are showing up as qualified even though they have not passed the most critical of exams monitored and now managed by ASIC.
“I guess many will be asking if the advisers have given any advice since Jan 1, 2022 and if so, what are the consequences. And of course, how and why has it taken so long for ASIC to catch up with the licensees.”
Earlier this year, ASIC told a Senate Economics Committee that it would be following up with those AFSLs who had failed to report advisers who should be removed from the FAR as a result of failing the financial adviser exam.
Williams questioned if smaller licensees needed extra support and monitoring to ensure they were completing the relevant tasks and running a successful business.
“It is an odd situation, whereby in many instances across small licensees, the financial adviser is also the licensee owner, compliance manager and in charge of client complaints. A few conflicts one might say.”
Regarding this week’s adviser numbers, there was a net loss of 30 advisers, six times higher than the previous week.
Some 20 licensee owners had net gains of 24 advisers and 38 licensee owners had net losses of 54 advisers. Five new licensees commenced and 11 ceased.
There was only one provisional adviser who commenced this week and none ceased.
Five of the licensees with net gains were new licensees including one which commenced with three advisers who moved away from Synchron. There was a tail of 17 licensee owners which were up by net one adviser including Steinhardt, Fiducian and Findex.
MCA was down by six advisers, having commenced the year with 34 advisers and now fallen to 11. Insignia was down by four and WT Financial was down by three, all at Synchron.
AMP, Diverger, Fortnum and Fitzpatricks were all down by two each and 30 licensee owners were down by one.
AUTHOR
Laura Dew
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Hi William, in relation to your comment: "“It is an odd situation, whereby in many instances across small licensees, the financial adviser is also the licensee owner, compliance manager and in charge of client complaints. A few conflicts one might say.”...I ask you how is this any different to any other professionals who are all individually licensed or accredited? Are you saying financial advisers are the only profession that needs an in between licensee to function? Also, in response, all these self-licensed advisers must belong to a complaints resolution scheme to assist and ultimately handle the outcome of consumer complaints. The first point of call for the consumer, should always be to resolve the issue if possible with the adviser. secondly a self-licenced advicer should be able to be their own compliance manager, it doesn't mean that they don't employ the outside services of an independent compliance specialist or a specialist lawyer. Your comments are unnecessarily harmful to the advancement of a profession. I believe all planners should be self-licenced eventually, not unlike every other profession. I ask you to name one other profession that requires the subcontracting of another unrelated party in between their practice and the direct license or accreditation of the authorities.