The Australian Securities and Investments Commission’s (ASIC) first FSCP finding relates to an adviser known only as “Mr S”.
Speaking at FAAA roadshow event in Sydney last month, Leah Sciacca, a senior executive leader for financial advisers at ASIC, confirmed that neither the register nor the press release would typically disclose the name of the financial adviser involved in a particular matter unless the outcome is required to be displayed on the Financial Advisers Register (FAR).
Ms Sciacca also explained that a summary of the decisions made by the FSCP, which was established under the Better Advice Bill as the single disciplinary body for financial advisers, will be published on the FSCP Outcomes Register, and occasionally accompanied by a media release.
The FSCP found that Mr S had impersonated a client during two telephone conversations with a bank in an attempt to facilitate a transaction, however, noted that it was done for the client’s benefit and that the adviser did not obtain any benefit from the conversations.
The panel found that Mr S had contravened the Corporations Act and directed him to provide three successive compliance audits from their licensee in relation to personal advice they have given to retail clients, with at least 12 months between the audits.
The FSCP kicked off at the start of last year, with its 31 part-time members being appointed in February.
The panel quickly came under fire from the Association of Independently Owned Financial Professionals (AIOFP), as executive director Peter Johnston labelled the panel “confusing”.
“How can you have a panel supposedly representing the advice industry containing only two politically damaged hybrid associations and an institutionally dominated one with minimal adviser member content?” Mr Johnston said.
“Furthermore, how can you not have an accounting association representative on the panel when a major theme is the tax adviser focus emanating from the Tax Practitioner Board? How can you not have an association with stockbroker representation on the panel?
“The same goes for the highly specialised SMSF practitioners. How can their association be excluded?”
In August last year, ASIC released regulatory guide 263, which provides an overview of the purposes of the FSCP, as well as processes and procedures around hearings and decisions.
Meanwhile, information sheet 273 explains the rights of advisers affected by an FSCP decision, including how to make an application to vary or revoke a decision and how to seek an independent review of an FSCP decision.
