In a statement released on Wednesday (23 December), ASIC confirmed the Financial Services and Credit Panel (FSCP) would be given its own statutory functions and powers, which will commence on the same day.
“The powers of the FSCP under the act include the power to direct financial advisers to undertake specified training, counselling or supervision and to report certain matters to ASIC,” the statement read.
“An FSCP may also: suspend or cancel a financial adviser’s registration; issue infringement notices in specified circumstances; recommend that ASIC commence civil penalty proceedings; and enter into enforceable undertakings with financial advisers.”
Under the regulations, ASIC must convene an FSCP where it believes that an adviser is “not a fit and proper person” to provide advice. It must also issue a warning and or reprimand with certain misconduct.
The statement continued: “ASIC will proceed to issue a warning/reprimand or make a referral to an FSCP only where it has formed the reasonable belief after carrying out its usual triaging, investigatory work and referral processes.
“This means that not all concerns about the conduct of financial advisers that come to ASIC’s attention will result in ASIC issuing a warning/reprimand or a referral to an FSCP.”
As commissioner Danielle Press noted in a parliamentary joint committee last month, ASIC would release guidance on how it will exercise its new powers, as well as seek consultation about the operation of the FSCP, early next year.
I’m yet to hear a logical explanation of how this is better for financial planners.
“not all concerns about the conduct of financial advisers that come to ASIC’s attention will result in ASIC issuing a warning/reprimand or a referral to an FSCP”
Of course not, any indiscretions from advisers aligned to the larger AFSL will be handled by ASIC, and it will only be the smaller advisers (or those wanting to leave the large AFSL) that will go through FSCP.
At least ASIC hasn’t parroted the Hume lie about the FSCP being a “single disciplinary body”. It is clearly just one of a number of disciplinary bodies, whose combined oppressive bureaucratic impact is preventing consumers from accessing affordable professional financial advice.