AFA News 14 April 2022.  On 30 March 2022, the AFA made a submission to ASIC in response to Consultation Paper 359 on an Update to RG 263 – Financial Services and Credit Panel.  This consultation relates to ASIC’s plans for the operation of the Single Disciplinary Body and the Financial Services and Credit Panel (FSCP).

This consultation paper addressed a number of the operational considerations in the establishment of the FSCP, however, the most important issue for us was the proposal that ASIC would publish a media release with respect to every sanction that was to be recorded on the Financial Adviser Register (FAR) as an outcome of an FSCP disciplinary matter.  At the AFA, we are supportive of media releases being issued for the most serious of outcomes, however, we do not think that this is necessary or appropriate for more minor and moderate matters.  The publication of a media release is likely to result in trade media coverage, and this will be very uncomfortable for any adviser impacted.  We therefore firmly believe that publicity should be limited to the more serious of disciplinary matters.

In our submission, we also expressed concerns about how ASIC might apply their discretion in terms of which matters to refer to an FSCP.  We have argued that other than the defined matters (“convening circumstances”), where they must refer matters to an FSCP, they should only use their discretion in limited cases of obvious importance.  We have also called for greater certainty on how ASIC will assess a matter as being serious, which is a key consideration in what is referred to an FSCP.

Please click here for a copy of the AFA submission.

For any questions on the design and operation of the FSCP, please email policy@afa.asn.au.

Issued 14.04.2022. AFA Policy & Education Update

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