Advisers query ASIC role in academics' FASEA submission
Financial advisers are querying whether two Griffith University academics received some form of commercial backing from the Australian Securities and Investments Commission (ASIC) to produce a 2018 submission to the Financial Adviser Standards and Ethics Authority (FASEA) on the financial adviser code of ethics.
The advisers are pointing to information on the Griffith University website which states that one of the authors of the submission, Dr Hugh Breakey together with the other author, Profession Charles Sampford had a “consultancy/commercial research” relationship with ASIC pertaining to submissions to FASEA (June/ASIC).
Also, under the heading of “consultancy/commercial research” the Griffith University website lists FASEA Submission (August) Financial Adviser Standards and Ethics Authority.
The advisers have raised the query after FASEA finally published submissions received from the 2018 consultation process in which Breakey and Sampford argued for the inclusion of a standalone Standard strictly prohibiting conflicts of interest, stating such a measure was critical for several reasons.
Their submission argued that the “removal of any and all conflicts of interests helps demonstrate and communicate the profession’s ethics to the wider public. It is a tangible reform that is visible to and understandable by the wider public, and will assist in rebuilding trust in financial services”.
The Griffith University website revealed that Breakey had received grants from a range of organisations, including the Australian Bankers’ Association (ABA) and the Australian Research Council.
Money Management has sought comment and clarification from Dr Breakey about the status of the submissions filed in relation to the code of ethics consultation.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
