FSCP fully operational and will address ‘less serious’ misconduct: ASIC
The Australian Securities and Investments Commission (ASIC) has outlined some of the activities of its Financial Services and Credit Panel (FSCP), which commenced operations last year.
The FSCP had been established as part of the Financial Sector Reform (Hayne Royal Commission Response – Better Advice) Act 2021 and fell within ASIC as the single disciplinary body for financial advisers from 1 January, 2022.
It was in operation and had expanded powers to enable it to address a broader range of circumstances, including less serious misconduct by advisers, said Leah Sciacca, ASIC senior executive for financial advisers.
“When FSCP panel matters are complete, ASIC will publish a summary of concerns and decisions of the panel on the FSCP outcomes register, which is located on the ASIC website,” she told audience members at the United Association Roadshow 2023 in Sydney.
Financial advisers would not be named on the outcomes register or in a media release if one were published about the case, Sciacca added.
However, this would not be the case if the panel’s decision was required to be reported on the Financial Adviser Register (FAR).
Still, no regulator could be resourced to do everything, she said.
“We do not, and cannot, investigate every instance of possible misconduct that comes to our attention. We have sophisticated processes to support us in deciding when to take action.
“At a macro level, these processes help us set strategic priorities and formulate our corporate plan. At a micro level, they guide our assessments of individual matters, including reports of alleged misconduct,” she explained.
Sciacca outlined that ASIC had “long supported” the professional standards reforms in 2018 to encourage higher standards of behaviour and professionalism by advisers.
“The code of ethics was developed by the Financial Adviser Standards and Ethics Authority, or FASEA, as part of the professional standards for financial advisers. As you know, the code of ethics imposes a set of principles and core values in the areas of ethical behaviour, client care, quality process, and professional commitment,” she said.
Although FASEA had been wound up, the code of ethics made by FASEA continued to apply.
Sciacca noted: “Compliance with the code of ethics is a consideration for us when we’re assessing financial adviser conduct, and I’m sure it is front of mind for you and your advice licensees as well”.
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Rhea Nath
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