ASIC questioned over failures
(27 April 2018 – Australia) The Hayne Royal Commission has turned its eyes to ASIC’s failure to pursue financial planners through civil, criminal or other methods.
ASIC’s senior executive leader for financial service, Louise Macauley, explained under questioning why the regulator made so many compromises including pursuing instances where misconduct and the provision of “jaw-droppingly” inappropriate advice were evident.
Ms Macauley said, “we would do this when they approach us and make us an offer we think would give a better outcome than the alternative … where what was offered is better than what we think we could get from a delegate.”
During the session it was revealed that ASIC has only taken one criminal action against an Australian Financial Services Licence holder in the last ten years.
Since 2013, ASIC has cancelled the licences of two dealer groups and suspended another two. In regards to the two licences that were suspended, Ms Macauley said she understands each time another licence within the group was used within the suspended period to continue providing services to clients.
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