Adviser Dash Vee permanently banned – July 8, 2024
Former financial adviser Dashiel Benjo Vee has been permanently banned from providing, performing in or controlling an entity within the financial services business after dishonest conduct.
Vee had earlier failed to pass the Financial Adviser Exam, and was found acting dishonestly by providing his employer Cojag Pty Ltd with a falsified certificate. He also misled 24 clients about his education when providing personal advice, and lied to colleagues and an education provider when he said that he had the certificate.
ASIC said that his conduct showed the opposite of integrity, sound judgment, trustworthiness, and professionalism, and that he would probably contravene a financial services law in the future.
Court updates
Win against Firstmac – first successful DDO case – July 10, 2024
Firstmac Limited has been found breaching the new design and distribution obligations (DDO) by failing to take reasonable steps to make sure that one of its investment products was consistent with its target market determination (TMD).
The company was found to have implemented a ‘cross-selling strategy’ of the investment product High Livez, which was made to 780 consumers who held existing term deposits with Firstmac. This, according to the Federal Court, was a breach of the DDO when failing to take reasonable steps to ensure it consisted with the product’s TMD.
The conduct took place between October 2021 and September 2022, and is the first DDO contravention finding by a court.
“ASIC took this case because we were concerned that customers were exposed to the risk they might obtain a financial product that was not appropriate to their needs and objectives.”
Sarah Court, Deputy Chair, ASIC
ASIC will now seek orders imposing pecuniary penalties against Firstmac.
Cancelled license
Accumulus Capital Pty Ltd – July 10, 2024
The Australian credit licence of Accumulus Capital Pty Ltd has been cancelled due to failing to pay ASIC Industry Funding Levies and related late payment penalties. The company has also not engaged in credit activities since the licence was granted.
ASIC news week 28
Financial Accountability Regime update
Final rules and information for the Financial Accountability Regime (FAR) have now been published by ASIC and the Australian Prudential Regulation Authority (APRA), which will help insurers and superannuation trustees prepare before it commences.
The FAR imposes a strengthened responsibility and accountability framework to enhance the risk governance cultures of APRA-regulated entities, directors and most senior executives.
It has already been applied to the banking industry, and will commence for the insurance and superannuation industries from March 15, 2025.
The new information includes:
- an amendment to the Regulator rules: Financial Accountability Regime Regulator Rules Amendment Instrument No. 1 of 2024 and Financial Accountability Regime Act (Information for register) Regulator Rules 2024; and
- a joint letter by ASIC and APRA which summarises key issues and responses that were raised during consultation, plus the concept and application of key functions.
Royal assent of the DBFO Act
The Commission has acknowledged royal assent of the Treasury Laws Amendments (Delivering Better Financial Outcomes and Other Measures) Act 2024. This, ASIC says, “marks an important step” in strengthening reforms to financial advice regulation as part of the Commonwealth Government’s response to recommendations 7, 8, 10, 13.1–13.5 and 13.7–13.9 of the Quality of Advice Review.
Reforms under the Act can be found here, and other regulatory guidance that are impacted by the Act will be updated later this year.
Industry funding levies for 2023-24
Last week, ASIC published the 2023-24 Cost Recovery Implementation Statement (CRIS), which outlines estimated regulatory costs and levies for each industry subsector, and helps entities plan and prepare budgets for the charges.
Expiring investment scheme legislative instrument
The Commission is proposing to let the legislative instrument ASIC Corporations (Land Holding for Primary Production Schemes) Instrument 2024/15 expire on October 1.
The instrument is relating to managed investment schemes, but its relief for primary production schemes is believed to no longer be required by the managed fund sector.
Feedback on the proposal can be submitted until August 9.
