ASIC reveals two bodies were vying to become code-monitors
The Australian Securities and Investments Commission (ASIC) has revealed that two parties were vying to become approved as Financial Adviser Standards and Ethics Authority (FASEA) code monitoring bodies until the Government changed its mind in October, last year.
The existence of the dual bids resulted from an answer to a question on notice from the Joint Parliamentary Committee on Corporations and Financial Services.
Up until the ASIC answer to the question, it had been widely known that a consortium led by the Financial Planning Association (FPA), the Association of Financial Advisers and the SMSF Association was seeking code-monitoring status, but the identity of the second code monitoring aspirant was widely known.
But even in confirming the two bids, ASIC declined to name either party.
“Two applicants submitted final applications to ASIC on 16 August, 2019, seeking approval of their compliance scheme,” the ASIC answer said. “On Thursday 10 October, 2019, the first applicant withdrew their application.”
“On Friday 11 October 2019, the Hon. Josh Frydenberg MP, Treasurer, and the Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator the Hon. Jane Hume, jointly announced that the Government would accelerate the establishment of a single disciplinary body for financial advisers,” the ASIC answer said. “The single disciplinary body displaced the role of compliance schemes in monitoring and enforcing the Financial Planners and Advisers Code of Ethics 2019.”
“On Monday 14 October 2019, the second applicant withdrew their application,” it said.
Recommended for you
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
Two investment advisory research houses have announced a merger to form a combined entity under the name Delta Portfolios.
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
