Sydney-based financial services director, Peter Geoffrey Gribble, has received a three-year ban from ASIC after two companies of which he was a director, refused or failed to give effect to determinations made by the Australian Financial Complaints Authority (AFCA).
Mr Gribble was the sole director of former AFS licensee, Qsmart, and a director of AFS licensee, Quantum.
AFCA made seven determinations against the two companies in 2020 in response to complaints relating to unauthorised trading and disclosure failures, along with inappropriate financial advice, and other misrepresentations provided by credit representatives.
These determinations directed Qsmart and Quantum to pay consumers a total amount of approximately $2.5 million.
“Directors of AFS licensees must ensure that their firms comply with AFCA determinations,” said ASIC deputy chair Sarah Court.
“This is a fundamental obligation of AFS licensees, and crucial in ensuring that Australia’s financial dispute resolution system remains efficient and effective.”
ASIC stated that Mr Gribble had approached AFCA determinations as if they were open to negotiation and had in some cases sought to persuade complainants to accept less than the determination amounts.
“AFCA determinations are not opportunities for negotiation,” noted Ms Court.
“Directors of AFS licensees must make sure that their firms comply with AFCA determinations within the time specified. If directors try to avoid this obligation, we will take steps to remove them from the financial sector.”
Mr Gribble is banned from controlling an entity that carries on a financial services business and performing any function as an officer of an entity carrying on a financial services business for three years beginning 6 October 2022.
ASIC noted that the banning does not prevent Mr Gribble from seeking to be authorised to provide financial advice. Mr Gribble also has the right to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.
OK, so he cant conduct an AFSL. So what, will he be forced to pay , or go to jail and assets sold. Please explain! This
How many more of these so called $2 self licensec advisers will it take for the regulator to recognize the adviser and the AFSL should not be one and the same with little financail resources to provide reasonable remediation when required.
And yet AMP and the big banks still hold their AFSLs. Are they too big to fail?
too big to not remediate more likely