In a brief statement, the Financial Services and Credit Panel (FSCP) said it had reprimanded the relevant provider for personal advice provided to a retail client between June–October 2022 that contravened the Corporations Act.
“The sitting panel determined that it reasonably believed that the relevant provider contravened sections 1041H and 921E(3) of the Corporations Act 2001 in relation to personal advice given to a retail client between June 2022 and October 2022 inclusive.
“The relevant provider was responsible for the backdating of some documents on a client file, including a statement of advice (SOA).”
As well as the contravention of the statement of advice, the panel said the relevant provider also failed to demonstrate five of the Code of Ethics’ standards.
“Consequently, the relevant provider failed to demonstrate the Code of Ethics’ values of diligence and trustworthiness and breached its Standards 1, 2, 4, 5 and 8.”
The affected standards include:
Standard 1: You must act in accordance with all applicable laws, including this code, and not try to avoid or circumvent their intent.
Standard 2: You must act with integrity and in the best interests of each of your clients.
Standard 4: You may act for a client only with the client’s free, prior and informed consent. If required in the case of an existing client, the consent should be obtained as soon as practicable after this code commences.
Standard 5: All advice and financial product recommendations that you give to a client must be in the best interests of the client and appropriate to the client’s individual circumstances. You must be satisfied that the client understands your advice, and the benefits, costs and risks of the financial products that you recommend, and you must have reasonable grounds to be satisfied.
Standard 8: You must ensure that your records of clients, including former clients, are kept in a form that is complete and accurate.
