ASIC reveals H1 advice enforcement stats
ASIC has revealed the number of enforcement outcomes which related to financial advice misconduct in the first half of 2023.
In a half-yearly update, the regulator said there were six criminal enforcement actions and 14 administrative ones, bringing the total to 20.
Looking at those which are still in progress as of 6 July, there are nine criminal ones and seven civil actions.
ASIC particularly highlighted a finding by the Federal Court that four companies that are or were part of the AMP
Group breached the law when charging life insurance premiums and advice fees from the superannuation accounts of more than 2,000 deceased customers.
The Federal Court ordered two of these AMP companies to pay a combined penalty of $24 million for the breaches.
The highest number of enforcement actions came from investment management misconduct where there were 18 administrative enforcement outcomes, six civil ones and one criminal outcome. This brought the total to 25, with financial advice misconduct in second place with 20 and credit misconduct at 16.
Overall, the regulator issued $109 million in civil penalties over the six-month period and had criminal charges laid against 125 individuals.
Some 19 individuals were disqualified or removed from directing companies and 46 were banned or suspended from providing financial services or engaging in credit activities.
ASIC deputy chair, Sarah Court, said: “Promoting market integrity and addressing misconduct that places consumers and investors at risk are enduring priorities for ASIC. Our commitment to insider trading and market manipulation deterrence continues and we expect further action for related misconduct in the coming months.
“Financial services laws exist for the protection of investors. Anyone who recommends financial products or provides financial advice on social media must ensure they are complying with the law and may face ASIC enforcement action when they are not.”
ASIC said it will continue to have “strong, targeted enforcement action” over the coming six months in an effort to focus on protecting consumers from harm and upholding market integrity.
This included the publication of two new information sheets for financial advisers; one focused on requirements for relevant providers to be registered with ASIC and one on declarations required when registering a relevant provider.
AUTHOR
Laura Dew
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Where do the fine payments go to?
Why can't they go towards funding ASIC instead of planners??
Nice, the $24mil penalty will help offset some of the asic levy advisers have to pay!