Ian Reid suspended by FSCP – November 22, 2024
Financial adviser Ian Reid has been suspended by the Financial Services and Credit Panel (FSCP) for three months after failing to comply with obligations when providing advice to three clients. The FSCP found that Reid relied on old statements which did not apply to the circumstances of these clients.
Kristofer Ridgway charged with dishonest conduct – November 19, 2024
Former financial adviser Kristofer Ridgway has been charged with 26 counts of dishonest conduct relating to the provision of financial services and in breach of sections 1041G and 1311(1) of the Corporations Act 2001 (Cth).
Allegedly, when Ridgway facilitated investments from 2016 to 2020 for his clients in Steppes Alternative Asset Management and Trinus Impact Capital, he failed to communicate to the clients that he was entitled to, and would get, substantial commission payments.
He appeared at Southport Magistrates Court in Queensland on November 18, was released on bail, and the matter adjourned for mention on February 3, 2025.
He was earlier charged with two counts of providing false or misleading information to ASIC in December 2023, and was permanently banned from having any involvement in financial services that year as well.
Court update
Hatch sentenced for not disclosing interests and providing false info – November 20, 2024
Former public company director Harry Hatch (Hatgikyriazis) has pleaded guilty to one count of authorising omissions, and been convicted for failing to disclose the total number of Copper Strike Limited shares he held – a breach of the Corporations Act 2001.
He was found authorising substantial holding notices and annual reports that were materially misleading to the ASX on six times between September 2016 and September 2019.
He was sentenced to six months imprisonment, to be released immediately after paying a A$2,000 ($1,303) fine with a requirement to be on good behaviour for 12 months.
“As a director, Mr Hatch failed to fulfil his legal obligations, acted dishonestly and made false and misleading representations.”
Sarah Court, Deputy Chair, ASIC
Hatch is also automatically disqualified from managing corporations for five years due to the conviction.
Cancelled AFS license
DOD Bookkeeping Pty Ltd – November 19, 2024
The Australian financial services licence has been cancelled for DOD Bookkeeping Pty Ltd (in liquidation) after a payment of compensation by the Compensation Scheme of Last Resort (CSLR).
AFCA, the Australian Financial Complaints Authority, made a determination against the company in March which it failed to pay – which made CSLR later pay out A$64,860.05 ($42,318) to a person – and then contacted ASIC.
ASIC news week 47
Letter to superannuation trustees
Superannuation trustees must improve their death benefit claims handling practices, and address any identified deficiencies around them, ASIC is stressing in a new letter.
The letter, signed by Commissioner Simone Constant, was sent to the CEOs of superannuation trustees, and addresses the Commission’s “observations of operational failures by trustees,” which includes long waits for death claims.
A more detailed report of ASIC’s findings and observations in the area will be issued in early 2025.
Extended legislative emergency relief
ASIC has extended a legislative relief to streamline insurance payments in emergency situations, where insurers and representatives can – in certain circumstances – give emergency payments to consumers without first giving them a Cash Settlement Fact Sheet (CSFS).
The initial relief came into effect in February 2022 and was due to expire in February, 2025, but is now extended to 2030 with one minor amendment.
Insurers can now use the streamlined process where the offer is made within 42 days of an insurable event instead of the 14 days, which can help around catastrophic events. The offers go up to the amount of A$5,000 ($3,254) in cash in emergency situations without the need to issue a CSFS beforehand.
New and updated guidance in response to the DBFO Act
New regulatory guidance and updates have been issued in response to reforms under the Treasury Laws Amendments (Delivering Better Financial Outcomes and Other Measures) Act 2024 (DBFO Act), and include four new sheets plus updates to Regulatory Guide 246 Conflicted and other banned remuneration, and Regulatory Guide 175 AFS Licensing: Financial product advisers–Conduct and disclosure.
The new information sheets include:
- INFO 286 FAQs: Ongoing fee arrangements and consents;
- INFO 287 FAQs: Non-ongoing fee requests or consents;
- INFO 291 FAQs: FSGs and website disclosure information; and
- INFO 292 FAQs: Informed consents for insurance commission.
Speech
On November 20, Commissioner Simone Constant delivered some remarks at the Association of Superannuation Funds of Australia Conference 2024 in Sydney, where she spoke about the issues superannuation members are facing today such as long waits for death claims, as well as how trustees need to step up.
ASIC earlier announced its new enforcement priorities for 2025, where the superannuation savings of ‘unscrupulous property investment schemes’ will be one point of focus.
She also addressed the common lack of trust in superannuation funds. The Commission’s research has found that “less than half of Australians trust superannuation funds to do the right thing by their members. The remainder were either neutral or explicitly didn’t trust their funds. This is a big problem when we’re thinking about confident and informed participation.”
