Appearing before the Senate Economics Legislation Committee in Canberra yesterday, senior ASIC officials were asked to provide an update on the total number of CBA-aligned financial advisers who have received banning orders or other punitive action.
“We’ve banned five advisers, had three EUs – three who have removed themselves from the industry – we have subsequently banned another adviser in relation to his conduct at a subsequent licensee, but he came to our attention because of misconduct in the CBA group so that came out of that and we are still looking at about four CBA advisers,” said ASIC commissioner Kathy Armour in response to a question from Senator John Williams.
Deputy chair Peter Kell interjected that there has therefore been a total of nine CBA advisers banned, with “more to come”.
Asked whether the FOFA reforms or other regulations are having a significant impact on the industry, Mr Kell replied that the advice sector is “on the up” in his view.
“[FOFA is] having an impact in terms of remuneration structures. It is also bringing to light some problematic past practices such as charging a fee for advice that wasn’t actually provided. We’ve got a lot of work underway in this space.”
Mr Kell reiterated that ASIC will provide guidance to the market about constructing and operating adequate remediation schemes, lamenting that some have “fallen over” in the past.
The questions followed an opening address by ASIC chair Greg Medcraft in which he indicated the corporate regulator will be focusing its enforcement activity more specifically on “bad culture”.
wait till the insto’s implement “robo advioe”!
I cant wait for ASIC to start looking closer at Macquarie Advisers!
Not defending advisers who knowingly do wrong by their clients but interesting to note, while they talk about ‘culture’ not a word is directed specifically about management.
Management creates a culture.
Management permits a culture.
Management fosters a culture.
Management rewards a culture.
But somehow management escapes the banning, the naming and shaming and the penalties at a personal level that ‘rogue advisers’ get hit with full tilt. Why is that exactly?
Gallipoli with front line trench soldiers being blasted to bits while the ‘generals’ of industry look on imperiously and imperviously…
As ASIC high five themselves about their actions against the problematic planners of 5+ years ago the rest of us are wondering what is being done against people causing problems now. This isn’t consumer protection, it’s not even justice. It’s an advertisement for how inadequate our controls are and a contributing factor as to why people don’t trust anyone in financial services.
The government should separate product and advice. Those doing a good job will be picked up in the non-aligned space, those doing poorly will need to find a new industry.
Management of boutique licensees are held accountable by the regulator, apparently not in the institutional space.
Laurel & Hardy reborn
However still no sign of any measures against management of CBA and its licensees. These are the people who have severely damaged the industry and indirectly tainted the reputation of many good, honest and professional advisers. I doubt they will ever be brought to account.
Once again the solution is to remove the product providers from the advice process.
Insulting to all proper advisers to be attached to the sales based distribution channel advice that is pumped out and promoted by 80% of our industry, From Licensees, product providers, education providers and most definitely our industry organisations.
All good adviser do is what is right by the client not align their pay packet with the clients advice.