In its update, ASIC confirmed that as of 1 January this year, ASIC had 28 criminal and 48 civil financial services enforcement matters still before the courts.
Specifically relating to financial advice misconduct, 10 criminal cases are before the court, as are six civil cases.
Other misconduct listed included credit (five criminal, 15 civil), insurance (three criminal, seven civil), investment management (six criminal, nine civil) and superannuation (four criminal, 11 civil).
Between July and December 2021, ASIC dealt with 32 enforcement matters in financial services, six of which specifically related to financial advice.
Meanwhile, nine were related to superannuation misconduct, three related to credit, two to investment management, one to insurance and 11 related to “other financial services” misconduct.
During that same period, ASIC recorded the following enforcement outcomes: $84.3 million in civil penalties imposed by the courts, 99 people or companies prosecuted for strict liability offences, 21 people or entities removed or restricted from providing financial services or credit, 31 people disqualified or removed as directors of companies and six people given custodial sentences and 10 people or companies given non-custodial sentences.
“During this period, ASIC continued to act against misconduct to maintain trust and integrity in Australia’s financial system and promote a fair, strong and efficient financial system for all Australians,” a statement released on Monday (28 March) read.
“ASIC commenced 21 civil penalty proceedings during the period and commenced court action targeting misconduct in insurance, superannuation and markets as well as system failures within major banks.”
The regulator also confirmed that all of its financial services Royal Commission investigations are now complete, with 10 proceedings still before the court.
As of 31 December 2021, the total penalties imposed from ASIC proceedings amounted to $110.67 million.
I know of several advisers who haven’t issued SoAs since SoAs became a thing, yet are turning over 7 figures per annum each. Several client complaints that I’m aware of that went no where with ASIC or AFCA and they’re still doing business. Meanwhile other poor schmucks are being banned left right and centre for sending bits of paper late, or in formats ASIC don’t like.
And they are the ones responded too. I know of one serious issue, reported to ASIC in 2018 that they have not even had to the courtesy to respond too.
Several hundred thousand was lost and the matter was settled after the affected clients took the AFSL to court.
But no action yet from ASIC.
Now if we could also filter those numbers to actions against licensed financial advisers verses ‘financial advice’ matters you might get a real look at how little financial advisers impact on ASIC. ASIC uses our AR ASIC fees to fund actions against criminals who have misrepresent themselves as advisers but are not, and in most cases, have never been licensed financial advisers.
And I bet none of that penalty money makes it’s way to the victims, nor used to offset the ASIC Industry Funding Levy. Perhaps the question needs to be asked…..where does it go and how is ASIC accountable for it?
I was almost scammed recently by a government impersonator who wrote that all red tape financial services regulations that did not add any value to clients or advisers would be overturned!