ASIC explains operation of disciplinary panels

Mike Taylor

Managing Editor and Publisher

22 December 2021

The Australian Securities and Investments Commission (ASIC) has outlined the rules for the Financial Services and Credit Panel arrangements underpinning the single disciplinary body, making clear that it will be undertaking the triaging before any referrals are made.

As well, the regulator has signalled it will be issuing guidance on the operation of the new arrangements early next year after a period of consultation.

However, the essential elements of the regie will be that ASIC will issue a warning or reprimand to financial advisers before making a referral to a panel and will only do so “where it has formed the reasonable belief after carrying out its usual triaging, investigatory work and referral processes”.

“This means that not all concerns about the conduct of financial advisers that come to ASIC’s attention will result in ASIC issuing a warning/reprimand or a referral to an FSCP,” it said.

“The powers of the FSCP under the Act include the power to direct financial advisers to undertake specified training, counselling or supervision and to report certain matters to ASIC,” the ASIC nortification said.

“An FSCP may also: suspend or cancel a financial adviser’s registration; issue infringement notices in specified circumstances; recommend that ASIC commence civil penalty proceedings; and enter into enforceable undertakings with financial advisers.”