The controversial standards authority paid its former CEO more than $200,000 for seven months in the top job, according to its annual report.
The Financial Adviser Standards and Ethics Authority (FASEA) is a Commonwealth entity that was established in April 2017 to set standards for the ethical conduct, educational qualifications and ongoing training of licensed financial advisers in Australia. FASEA’s powers and responsibilities are set out under the Corporations Act.
Its annual report for 2017-18 shows that during its first year in existence, FASEA paid a total of $370,641 to its nine board members.
Chairman and former KPMG executive Catherine Walter received the lion’s share with $113,042, followed by Mark Brimble ($90,522); Matthew Rowe ($33,675); Catherine Lowe ($31,332); Deborah Kent ($25,200); Michael O’Neill ($20,328); Carolyn Bond ($19,320); Steve Somogyi ($19,320); and Simon Longstaff ($17,871).
Former CEO Deen Sanders received a salary of $219,090 for his seven months in the top job from 18 September 2017 to 30 April this year.
Much of FASEA’s work over the last 12 months has been establishing its office and hiring staff. The authority also published a series of draft standards with accompanying papers explaining them. These include:
1. Draft Guidance on Code of Ethics
2. Draft Guidance on Education Pathways for all Advisers
3. Draft Guidance on the Financial Adviser Examination
4. Draft Guidance on the Professional Year
5. Draft Guidance on the Provisional Relevant Provider Term
6. Draft Guidance on Continuing Professional Development
7. Draft Guidance on Foreign Qualification
The annual report also revealed that FASEA receives “industry funding” of $3.9 million annually under a contract that expires on 30 June 2021.
“Funding was intentionally short‐term to cover the establishment of FASEA and its initial period of operation to enable it to fulfil its legislative timelines,” the report said.
“It is expected that prior to the termination of the Funding Agreement, separate arrangements will be put in place for the financial services industry as a whole to provide ongoing funding to FASEA to enable it to perform its functions under the Corporations Act beyond the expiry of this agreement.
“The industry funding provided to FASEA under the Funding Agreement is not tied. FASEA may use the funding in connection with the fulfilment of any of its prescribed statutory functions under s.921U of the Corporations Act.
“The funding is not required to be repaid.”
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