A statement issued by ASIC today claims the regulator “has negotiated the imposition of additional conditions” on MyPlanner’s AFSL after an investigation found authorised representatives had provided “poor financial advice” and “lacked monitoring and supervision”.
The statement said the regulatory surveillance found that some advisers authorised under the licence had not made adequate inquiries into client circumstances or completed sufficient analysis to justify advice provided.
The licence conditions have also been applied to related entity MyPlanner Professional, the statement explains.
However, speaking exclusively to ifa, MyPlanner managing director Philippa Sheehan offered a slightly different chain of events, explaining that the company proposed an independent review to the regulator following the surveillance.
Ms Sheehan, who was named Dealer Group Executive of the Year at the ifa Excellence Awards 2017, said she tabled the review in line with her broader views on good governance in the industry.
“[I believe] that all licensees should be subject to the appointment of an independent expert for periodic reviews and part of AFSL conditions,” Ms Sheehan told ifa.
“This is something that should apply to the small, the large, the privately owned and the vertically integrated models.”
ifa understands that ASIC agreed to the terms but has subsequently positioned the press statement as the conditions having been “negotiated” and “imposed” by the regulator.
A number of MyPlanner authorised representatives were previously licensed by now-defunct licensee Custom Wealth Solutions before moving to SMSF Partners, which subsequently rebranded as MyPlanner after Ms Sheehan’s appointment.
Google “How do I start a class action against financial planners” I am considering it. There are lots of lawyers advertising online to deal with poor financial planning. It seems only the law can make sure there is integrity in the FP industry
You won’t probably publish this however in sport you have your medal taken off you if you do wrong
Two things should happen
Either the IFA takes the higher and moral ground and makes the award null and void
Or Phillips hands it back
Sorry I thought the criteria for the award was based on role modelling not just professionalism but compliant processes in place, ethical standards, compliance based on the criteria
Not doing anything and hoping this will go away is condoning the bad news and governance that you portray so well every day IFA
Over to you Aleks viscovich
At least give us your reasoning why you have let the award stand
Otherwise we will start to believe earlier comments that this is all about sponsorship
Oh the hypocrisy of all your comments. Banks lead to bad advice , independents lead to bad advice. I have run both. Doctors don’t blame hospitals, planners need to be responsible then we have a profession !! That’s the model. We cant blame someone else. We all know the rules. Break them at your peril. Be punished , be personally liable. Stop pointing the finger !!! Man up (or women)
“ASIC’s surveillance found that some MyPlanner advisers had not undertaken adequate inquiries into clients’ relevant circumstances, had not completed sufficient analysis to determine the suitability of strategies, had not clearly defined the scope of advice, and had used generic reasons to support advice. Further, MyPlanner’s pre-vet and audits did not sufficiently identify these issues.”
Then the phoenix…
“As a large number of representatives and staff recently moved to a second AFS licence, MyPlanner Professional Services Pty Ltd (MyPlanner Professional), the additional conditions also apply to the AFS licence of MyPlanner Professional.”
Scary thing here is that the people running these kinds of models purport to be industry leaders and receive airtime.
Is the issue self-awareness on behalf of the Management of Myplanner or are the real industry leaders diverted in running legal businesses?
Well done IFA! You couldn’t have planned a better chardy and popcorn story! And setting it up with an award earlier in the year – genius! Keep going anons – this one has a while to run yet I’m sure!
Philippa is neither good nor bad but rather normal. The monitoring and supervision provisions will inevitably fail because of human intervention (staff turnover, sick days, post event audits, etc).
I spent some time yesterday with a Reg Tech provider. The conversation was refreshing. “Compliance needs to be driven by the consumer”. Blockchain, AI etc is on the way to the point where Mr Metcalfe has already flagged it as the future for ASIC.
Reg Tech is cost effective for all stakeholders, adviser, licensee and ASIC, and will produce the system that properly monitors advice activity. Reg Tech is the disruption that will remove the failed adviser who decides to go into compliance. In my view the labour cost saving will be fantastic!!
Reg Tech assist with conducting reasonable investigations and appropriate advice?
And Phoenixing licensees?
Worth thinking about the business you work for- presumably RegTech- and the problems it can actually solve/assist with.
These kinds of behaviours from Myplanner’s management should be shamed and removed from the industry
This still doesn’t change anything. BANKS and their sales force planners are the greatest scourge on our professionalism.
Can’t spin this one big fella
Please, Philippa, what rubbish! If you wanted an “independent expert” – why you don’t you engage Ernst & Young instead of ASIC…. MyPlanner and their ilk are known as “catchment licensees” for a reason – and its great that ASIC has started focusing on them.
What is a “catchment licensee” so I can be assured never to work for one.
I believe Sceptical is referring to licenses who take on the dodgy financial planners who no other AFSL wants – or a bad reputation or are under ASIC investigation.
Pretty much a Licensee where you don’t need a great deal of “background checks” to Join. I.e. a dealer group of last restort.
A catchment licensee is essentially considered a licensee who takes on advisers asked to leave other licensees.
Like ive said a million times, turn the blowtorch on the independants / small dealer groups and you will find as many or more issues. Ive been on both sides of the fence in different roles and can confidently say who I would like my parents looked after, and it aint the likes of my planner
You wont in the independents. Small dealer groups maybe for sure.
Possibly, point taken
Karma at last.
I’m really disgusted in the comments from the keyboard warriors commenting on the story. If you don’t have the intestinal fortitude to put your name to your comment you have no real credibility. As for comments regarding Phoenix schemes, where has ASIC inferred that. If you don’t know the facts, stick to your fantasy wonderland and hope to god you don’t go through a review of your own.
Yeah like there’s only one Matt in the world. Good one
Hey [b]Matt[/b], you don’t speak for all of us!
Kind of makes all the nice words about Standards and Compliance on the Myplanner website rather hollow..
What nasty people, give Phillipa a break. I’m not sure how many advisers were involved but to drill down on one person to be watching every adviser that delivered advice, really?
Like everyone on this site expects managers at a bank to do??
Couldn’t happen to a nicer person/group. Anyone associated with MyPlanner should be ashamed. Karma at last. What about your poor clients you put into bad property investments…..
Why is it when something happens to one of ours we all jump on the bandwagon and kick them harder when they’re down.
I’m sure we all have a skeleton or two in our closets. Give her a break.
Sorry anon asic or customers don’t like advisers that much with skeletons , I suggest clean out closet and sell business
So you’re having a spring clean and selling out are you?
I have to say, it’s pretty disillusioning to see the people in the comments section descend like vultures – so eager to tear an industry peer apart. We want consumers to trust us but we treat our own like that? Yikes.
Glass houses, pedestals, etc etc
egg on your face much IFA? I wonder if going forward you should use a questionnaire to potential winners to ensure they disclose any pending ‘investigations by the regulator!!
Phillips Sheehan loves to spin a story and always has. Shen spends more time chasing awards preaching to the industry as to what we should all do, but has no real idea herself. It has taken ASIC along time to catch up with her. IFA awards are also a boys or girls club for people who contribute to the magazine. Philippa Sheehan and the other attention grabbers in this industry should be banned for poor governance.
Wow great spin Philipa omg and only issues come from the vertically intergtated she has proclaimed in the past
There there anon. Just because you haven’t been able to win an award doesn’t mean those who have don’t deserve theirs. Did your mum give you a 8th place ribbon?
Karma
Is she serious? I just read the ASIC media release. Does good governance include trying to phoenix the MyPlanner AFSL by migrating their advisers to a new licence? Seems like a failed attempt at ditching bad advice in the old licence. Hooray to dealer group executive of the year.
The Media Release says it all. Just imagine how many approval levels ASIC would have in place before publishing anything like this to ensure it is factually correct. How many approval levels does Phillipa have (not counting the editors of IFA who appear to publish anything she says (but probably won’t publish this comment)).
Either someone is spinning or someone else is claiming a scalp they’re not entitled to.
Spinning!
IFA should check governance etc before awards , not a good look IFA
About time lets hope ASIC looks at a previous business MyAdviser Pty Ltd which was taken over by IOOF a few issues with advice here also – surprised IOOF have not self disclosed.
From My Adviser to My Planner its contagious
Nice spin Philippa
GOAT
So if she said “I believe that all Licensees should be subject to the appointment of an independent expert for periodic reviews and part of AFSL conditions,” why is she not following through with her beliefs and instead not having good compliance in order..