- The Financial Planning Association has called for the Federal Government to extend the existing freeze on the ASIC levy for a further 12 months. In its pre-budget submission, the association is pushing for cost certainty for financial advisers, particularly while the Department of Treasury remains in the process of reviewing ASICs funding model more broadly.?
- Colonial First State (CFS) this week confirmed it would be paying out settlements based on a class action brought against the group. Run by Maurice Blackburn the class action related to the rollover of default accounts in 2016 and 2017, with the group denying the allegations, making no admissions of wrongdoing, but ultimately paying out settlements to affected clients.?
- Mayfair 101 Group has failed in its appeal against a Federal Court judgement that found the group had engaged in misleading and deceptive conduct in relation to the advertising of its financial products. The result means the $30 million fine is still payable, which is related to the distribution and sale of products including Australian Income Solutions and Mayfair101 to wholesale investors.?
- Adviser bans continue to trickle through even as the industry has nearly halved in size. This week it was Peter Gribble of Smart, who according to ASIC had failed to give effect to multiple determinations made by the Australian Financial Complaints Authority. The determinations required payments totalling $2.5 million, with the licensee banned for three years as a result.
- Finally, turning back to the FPA, the association is also pushing for significant changes to the Compensation Scheme of Last Resort, saying the current proposal is “too narrow”. They believe it fails to address the underlying cause of many unpaid determinations and should more closely align with the broader jurisdiction of the AFCA.?
