The enforceable undertaking was entered into by HSBC on 13 May 2016 and followed a proactive ASIC surveillance of HSBC’s advice on retail structured products.
ASIC’s surveillance found instances between January 2009 and March 2013, where the scope of advice was restricted to a single HSBC structured product and advisers had obtained little or no information about their clients’ relevant personal circumstances such as their assets, liabilities, income or debts before providing advice. ASIC was also concerned that in some cases there was insufficient evidence that the advice was appropriate for the clients’ circumstances or needs.
As a result of the surveillance, HSBC ceased offering structured products to retail clients in March 2013.
The EU required HSBC to develop and implement a review and remediation program to compensate customers who lost money because of inappropriate advice.
As part of the remediation program, HSBC reviewed 510 structured product advice files and determined that 82 files (16 per cent) contained inappropriate advice.
HSBC also tested and reviewed advice provided on other product types such as superannuation, insurance, annuities and other investments, and identified much lower instances of inappropriate advice having been provided in those areas. HSBC has offered affected clients approximately $690,000 in compensation across all product types.
HSBC’s work under the EU was assessed by Ernst & Young, who performed the role of the Independent Expert under the EU. Ernst & Young determined that HSBC has materially delivered on its requirements in the EU and made no further recommendations.
HSBC ceased providing all personal financial advice to customers on 2 March 2018.
Meanwhile, general public probe finds widespread gifts being accepted by ASIC staff!
We don’t need structural separation. It is working so well…….
What is very interesting about this is that a number of advisers at HSBC made significant complaints about the sales culture at HSBC, which went all the way to the head office in London and were either told to fall in line or were terminated, ASIC is also aware of that…. lets remember though, HSBC is the same bank who made millions (if not billions) off money laundering for mexican cartels and terrorists, no one in management lost there job then and no one at HSBC Australia in ‘management’ will lose their job over this
But but whistleblower laws
This was an opportunity for ASIC to make a name for themselves and revoke the AFSL of a bank. The banks are the koala bears (protected species). I think Terry’s greviances are genuine.
And yet ASIC and Kenneth Hayne think its a good idea to eliminate Insurance advisers and Mortgage brokers, therefore driving all the non aligned advisers to become employees of the banks (as we cannot compete by charging a fee for products clients can get directly from a salary + bouns bank adviser with no extra fee).
Why do the regulators not understand that vertical integration is a major problem and “independent” advisers are an absolutely necessary part of the distribution network who provide choice and protection for their clients. How can they not see that reducing insurance commissions to 0 will drive all insurance sales to the direct sales advisers and produce expensive and poor consumer outcomes.
They are either stupid, or evil (more likely a bit of both). There cannot be any other explanation.
Lucky they didn’t have SOA’s checked before going clients or a Client Protection Policy in place or they might have lost their AFSL.
terry was the most compliant licensee yet, he suffered a terrible fate. others have no hope. asic should just cancel everyone’s afsl too
HSBC also pays the big bucks to ex-ASIC staff.
FFS Terry give it a rest
It’s hard to read the page with all of your ridiculous comments
Face facts a lot of your advisers were shonks and you weren’t far behind
I can’t comment on the individual advisers from Dover. However it seems like the banks keep getting let off for everything whilst Terry and all the Dover advisers have had their lives ruined because of a few bad apples and a poorly worded document.
Why can’t there be one set of rules for everyone. And penalties based on the revenue/profits of the entity.
An adviser who runs a business rips off clients and is fined millions. He/she loses everything and fair enough. CBA Rio off everyone, lie, steal and cheat and pay a small fine which amounts to way less than their executive bonuses.
Why can’t we have a fair system where the banks actually get in trouble.
Until banks actually face serious fines for wrong doing they will continue to rip off everyone.
But soon there won’t be any advisers left to blame for everything. Will be interesting to see who cops it for the banks evil deeds then.
terry will get his day in court so let’s wait until then. let’s see whether the court agrees with ASIC’s position. I think you will find that the court will agree with ASIC rather than Terry.