Ethics Centre among beneficiaries of left-over remediation payments

ASIC/

16 February 2021
| By Mike |
image
image
expand image

The Ethics Centre has been a beneficiary of a practice adopted by the Australian Securities and Investments Commission (ASIC) which has seen surplus/residual remediation funding directed towards consumer and charity groups. 

ASIC has admitted to a Parliamentary Committee that in circumstances where remediation funds have not been capable of being returned directly to affected consumers they are directed at ASIC’s discretion to “appropriate recipients”. 

Answering a question on notice, the regulator said that from time to time it monitored consumer remediation programs conducted by firms. 

“Sometimes these programs include a residual payment where funds could not be returned directly to affected consumers, so instead a residual payment was passed by the firm on to an appropriate recipient to be used to provide services, information or education to consumers of a type that may be affected by the misconduct,” it said. 

“In these situations the underlying principle is that a firm should not benefit from the profits of their breach. In both these circumstances, the firm directly pays the relevant recipient. 

“Examples of recipients who have received payments under either a CEU and/or residual remediation payment include: 

* Ecstra Foundation 

* Financial Literacy Australia (wound-up) 

* The Financial Counselling Foundation 

* The Ethics Centre 

* Smith Family 

* Brotherhood of St Lawrence 

* Salvation Army 

* Cerebral Palsy Alliance 

* Dementia Australia 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 6 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 5 days ago

TOP PERFORMING FUNDS