ASIC disciplinary actions against advisers move lower
New data analysis has revealed how financial advisers have become less problematic for the Australian Securities and Investments Commission (ASIC) as measured by disciplinary actions undertaken by the regulator.
The analysis, conducted by WealthData, has revealed disciplinary actions against advisers to be at their lowest level in eight years.
According to WealthData principal, Colin Williams the below graphic highlights the total number of disciplinary actions (DAs) by individual advisers for each year since 2015. In total 175 advisers affected by DAs with the most occurring during 2019.
He said the ‘orange line’ signifies the number of DAs that do not have an end date. Most of these occur when the adviser has been permanently banned. The data supplied by ASIC is often a little vague on this. The total number is 48. Not shown are the number of advisers that are current, this is only at 7.
“In per centage terms the numbers are very low. For example, in 2019 the average number of advisers was 25,712 and with 34 DAs that is only 0.13% of the advisers or 1 in every 756 advisers. Given the level of scrutiny post the Royal Commission, these figures may seem very low.”
“When looking at 2023, the number is currently at 4. When reviewing media releases from ASIC for ‘advisers’ there are many more than 4. What often happens is that a media release relates to a case that commenced pre 2023. Therefore, we can expect numbers for 2023 to keep building through the years post 2023,” Williams said.
Key Adviser Movements This Week:
- Net Change of advisers down by (-4)
- Net Change of +10 for 2023 Calendar YTD
- 29 Licensee Owners had net gains for 41 advisers
- 30 Licensee Owners had net losses for (-41) advisers
- 6 New licensees and 2 ceased
- 7 New entrants
- Number of advisers active this week appointed / resigned: 92.
Summary
A busy week with 92 advisers affected in some way. Six new licensees commenced indicating that the growth of micro AFSLs is continuing.
Growth This Week
- A new licensee as named last week to members commenced with 6 advisers
- Another new licensee commenced with 5 advisers
- 3 licensee owners grown by net 2 including Insignia who gained advisers from Beyond Band Australia who have agreed to provide new opportunities to Bridges, a licensee owned by Insignia
- Centrepoint also up by 2 including 1 adviser coming across from Affinia which is now part of Count Group.
- Rounding out the growth of plus 2 was another new licensee
- 24 licensee owners up by net 1 including Findex, Count Group, Diverger and Capstone.
Losses This Week
- Beyond bank down by net (-6). As mentioned in the growth section, they have commenced with Bridges as their advice provider.
- ANZ Bank lost 4 advisers and all are showing ceased
- Three licensee owners down (-2) each including Clime and Morgan Stanley
- A long tail of 25 licensee owners down by (-1) each including Evans Dixon, Picture Wealth, PSK and AMP group.
Hardly surprising. ASIC, FASEA, and the Government have ensured that there are a lot less advisers now to beat up on.
At the end of the month, the local Highway patrol would drive down to the roundabout five minutes from the station and book people for incorrect use of indicators. It was an easy way to get their stats up. It’s a similar relationship with ASIC (Gestapo) looking for Jews in 1930, in this case that’s Advisers . It’s only a matter of time before this corrupt body need to hit its targets. So they’ll ban a few advisers for defective fee documents due to spelling mistakes..or worse not meeting the best interest obligations because you left out a $200 boat from your SOA. They could go after real criminals like scammers but the corruption in ASIC won’t allow that.