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
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
