ASIC urges advisers/licensees to dob-in misbehaving peers
With the Australian Securities and Investments Commission’s (ASIC’s) inquiry into the Shield Master Fund managed investment scheme still on foot, the regulator has urged financial planning licensees to help identify and report similar instances.
It has pointed to “a range of significant investigations underway in this area” and the likelihood of ASIC taking further action.
The ASIC urging has come has financial advisers continue to complain that warnings around the collapse of Dixon Advisory were not sufficiently heeded by ASIC giving rise to heavy demands on the Compensation Scheme of Last Resort (CSLR).
The message was conveyed by ASIC commissioner, Alan Kirkland who, while not specifically naming the Shield fund or associated entities referenced “financial advice being provided – perhaps by the telemarketer, perhaps by a financial adviser they introduce during a phone call – which recommends that the consumer switch their super into a high-risk investment, often involving property development”.
“This exposes consumers to the risk of significant losses – not only from the nature of the underlying investments but also from the high fees that are deducted from their super balances, directly or indirectly, by a range of entities along the way,” he said.
Kirkland told a conference of financial planning licensees that they it was in their interests to stop such practices.
“Licensees have a role in preventing misconduct,” he said.
“It’s your responsibility to ensure advisers are acting in the best interests of clients, and to have adequate monitoring and supervision arrangements to detect concerning conduct.”
“We are also conscious that the advisers you authorise are in a position to recognise where somebody who comes to them has been a victim of poor advice.
“Where you detect concerning conduct, you must report it to ASIC. That includes misconduct involving other licensees.
“I hope that we can rely upon you to assist us to drive out these practices which – as I have noted – present threats not only to consumers, but also to trust in the financial advice industry.”
So a decade of Advisers making over 60 complaints to ASIC over Dodgy Dixon’s to which ASIC says they investigated in 2016 and did nothing.
Of course ASIC then turn up again years later when Dixon’s is completely cooked and then ASIC let Dixon’s Illegally Phoenix into E&P and of course ASIC do nothing yet again.
Yet somehow ASIC want to turn round and shift blame to Advisers.
Well they have as the influenced the CSLR to only Advisers and not MIS product. They made Dixon’s the only retrospective beneficiary of CSLR to bail out Canberra bureaucrats with losses. And they even advertised for people to make claims to AFCA knowing they will land at CSLR.
Oh my sad sad Advisers, we are so freaking persecuted by corrupt Canberra.
What’s the point. Advisers have been dobbing in union funds for decades and ASIC have done nothing.
Have done it previously as was told by an ASIC employee that “unless you have lost money we don’t take the complaint seriously”. I’ve reported a few since but nothing has been done so have stopped doing so. ASIC are incompetent and are simply looking to distract away from their incompetence.
In my opinion – Perhaps ASIC should employ more proper investigators rather than former consumer advocates.
This is pretty rich to say the least.
ASIC does not employ consumer advocates. And unfortunately nor do consumer associations anymore. Both have been hijacked by career activists. It’s a large part of why our regulation is so bad, and the genuine interests of most consumers are ignored.
“Where you detect concerning conduct, you must report it to ASIC. That includes misconduct involving other licensees.
“I hope that we can rely upon you to assist us to drive out these practices which – as I have noted – present threats not only to consumers, but also to trust in the financial advice industry.”
The adviser community did this, notably with Dixon and yet here we are paying for it via the CSLR.
My confidence in ASIC is zero.
Well I tried….
The easy route I was told on the phone….”what do you expect us to do about it”… like WTF you’re ASIC and I’m paying your fees.
The second avenue I was completing ASIC online portal and after waiting 3 hours on the phone to Hesta and another 2 to AwareSuper after 1 hour just finding the correct website and another 45 minutes of filling out the form I said I, I will take the risk of not reporting.
Oh,…. and a professional external compliance person told me also it’s a he said v she said scenario.
The good thing is it only took 2 hours to lodge a quarterly breach report…thanks ASIC.
Oh….and the last thing; I’ve learned is that in 1932 Germany, Jews that reported crimes to Police dissappeared and when it comes to ASIC it’s 1932 Germany and I’m not game to poke my head out and ASIC worked hard at creating that environment.
In summary we’ve got an Adversarial regulator and a public servants = an inefficent financial services systems i,e ASIC failed.