Adviser bannings are trending up, says ASIC
The Australian Securities and Investments Commission (ASIC) has told a Parliamentary Committee that there has been an upward trend in the banning of financial advisers.
The regulator has told the Parliamentary Joint Committee on Corporations and Financial Services that over the last three years there have been 103 financial adviser bannings, with the deputy chairman, Peter Kell saying “the trend has been upwards”.
Outlining the adviser bannings, Kell said there had been 25 in 2014-15, 37 in 2015-16 and 41 in the year to date, 2016-17.
“Those were bannings and also leaving the industry as a result of enforceable undertakings or civil action,’ he said.
“It has been a busy area for us, and an important area for us, as we deal with those advisers who have been causing problems,” Kell said.
The ASIC deputy chairman then referenced an announcement in early June relating to a Westpac adviser.
“He was banned for five years and there was around $1.5 million in refunds provided, and there is a lot more in the pipeline,” Kell said.
He said the data indicated that ASIC had been very active in the financial adviser space and it remained a major area of focus for the regulator.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.