ASIC Publishes First FSCP Reprimand for Adviser Impersonating Client
FSCP Issues Landmark Reprimand After Adviser Caught Posing as Client
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
ASIC's newly formed Financial Services and Credit Panel (FSCP) has recently published its first reprimand of an adviser known only as "Mr S" for impersonating a client during two phone conversations with a bank.
Although the adviser did not benefit from the attempt to facilitate a transaction on the client's behalf, the panel determined the adviser contravened the Corporations Act and issued a directive for the adviser to provide three successive compliance audits undertaken by their licensee.
The FSCP Register and Adviser Privacy
The FSCP Register is designed to display any adverse findings against financial advisers, but it will only include a summary of the finding if nothing noteworthy was determined. The names of advisers involved in a matter are usually not disclosed unless required to be published on the Financial Adviser Register. In some instances, a media release may be published by ASIC, but advisers will not be named on the outcomes register or in the media release unless the decision made by the panel is required to be recorded on the Financial Adviser Register.
New Regulations and the FSCP
The FSCP was created as part of the Better Advice Act passed in late 2021, which streamlined regulatory aspects in the financial services industry, including the shutdown of the Financial Adviser Standards and Ethics Authority (FASEA). The FSCP was officially launched at the beginning of last year, however, it took nearly six weeks before the government announced any appointments. The panel is expected to address less serious misconduct of advisers in the industry.
ASIC Senior Leader for Financial Advisers, Leah Sciacca, noted the existence of the FSCP at the Financial Advice Association roadshow last month and stressed that advisers who commit less serious misconduct wouldn't necessarily be named. Ms Sciacca explained that from time to time, ASIC may issue a media release when appropriate, but advisers' names would not be included in the release or on the outcomes register unless the decision is required to be recorded on the Financial Adviser Register.
In Conclusion
The FSCP has made its first published reprimand of an adviser for impersonating a client, further highlighting the regulatory environment within which financial advisers need to operate. The new FSCP register is expected to bring more transparency and accountability to the industry, however, it will not necessarily name and shame advisers committing less serious misconduct. It remains to be seen how the panel will operate and what impact it will have on industry compliance and misconduct.
Published:Saturday, 3rd Jun 2023 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
The Australian Securities and Investments Commission (ASIC) has commenced a thorough review of the motor vehicle finance sector, focusing on enhancing consumer protections and ensuring compliance with responsible lending obligations. This initiative is particularly attentive to the experiences of borrowers in regional and remote areas, including First Nations communities. - read more
The Australian government has unveiled a new initiative to make electric vehicles (EVs) more accessible to a broader segment of the population. This program offers low-interest loans to Australians earning less than $100,000 annually, as well as to essential workers such as police officers, teachers, firefighters, and nurses, regardless of their income level. The loans are available for both new and used EVs priced up to $55,000. - read more
Macquarie Bank has announced a strategic decision to cease offering new car loans through its direct, broker, and novated leasing channels. This move is part of the bank's broader strategy to concentrate on expanding its home loan and deposit services. - read more
The Australian Securities and Investments Commission (ASIC) has recently conducted a comprehensive review of the nation's motor vehicle finance sector, uncovering significant issues that raise concerns about responsible lending practices. The findings indicate that some consumers are being subjected to exorbitant fees and are defaulting on their loans shortly after approval. - read more
In a significant development within the Australian financial sector, Allied Credit has announced the acquisition of a substantial portion of Macquarie Group's car loan portfolio, valued at $1.5 billion. This strategic move is set to bolster Allied Credit's position in the car finance market and expand its customer base. - read more
In this article, we are embarking on a guided journey that we believe will help immensely in navigating the intricacies of the car loan process. - read more
With the excitement of purchasing a new vehicle, the financial responsibilities that come with a new car loan can often be overlooked. Balancing your budget when you have taken on a new car loan is crucial to financial well-being and long-term happiness with your purchase. In this article, we will explore five practical strategies that can help you navigate the common financial challenges that accompany car loans. - read more
The Australian automotive landscape has witnessed a significant transformation with the rise of online car sales. The concept of browsing, selecting, and purchasing a vehicle through digital platforms has gained immense popularity, offering consumers a vast array of choices at their fingertips. - read more
Purchasing a car is a major financial decision for many Australians, and it often involves securing a loan. With numerous options available, navigating the car loan landscape can be overwhelming. Understanding your choices is essential for finding the loan that best suits your needs. - read more
Car loan refinancing involves replacing an existing car loan with a new one, usually to lower the interest rate, reduce monthly payments, or modify the loan term. In Australia's fluctuating economic landscape, refinancing can be a strategic financial decision for borrowers looking to adjust their finances to more favorable terms. - read more
Need Help Finding a Loan?
Get a free car loan eligibility assessment and compare offers tailored
specifically to your circumstances.
All finance quotes are provided free (via our secure server) and without
obligation. We respect your
privacy.
Knowledgebase
Option: A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.
