ASIC is investigating a number of financial planning dealer groups that advisers perceive as “licensees of last resort” as part of its crackdown on poor reference-checking processes.
In March 2017, ASIC warned it will take action against the licensees if they do not start making efforts to prevent rogue advisers from circling the industry.
Speaking to the parliamentary joint committee on corporations and financial services on Friday, ASIC deputy chairman Peter Kell said the regulator is also conducting a surveillance of seemingly easy-to-join dealer groups.
“There is a bit of an issue around some licensees being perceived as 'licensees of last resort', where you go if you left other places,” Mr Kell said.
“I can assure you that is very centre for us.”
Mr Kell declined to name the groups of last resort, but made it clear the issue of poor reference-checking exists across the industry, and not just at major institutions.
He also reiterated calls for more powers to ban those supervising financial advisers.
“We have, as part of our enforcement review, also sought some additional powers. The power to ban senior managers and executives is not nearly as straightforward for us as banning the frontline advisers,” he said.
“Yet, sometimes, these are the people who are actually driving the bus," Mr Kell said.
Banking regulators around the world are focusing on addressing company culture to prevent misconduct, according to a report by Herbert Smith...
Income investors have been cautioned to prepare for potential changes to a variety of government policies should Labor win the next federal ...
The corporate regulator has announced that UBS Securities has paid a penalty to comply with an infringement notice given by the Markets Disc...