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ASIC today lodged an initial submission to the Senate Economics References Committee inquiry into the performance of the regulator.
ASIC will make several submissions to the inquiry, including a major submission that addresses the full terms of reference and issue-specific responses to other submissions to the Committee.
This initial submission provides an overview of our actions on Commonwealth Financial Planning Limited (CFPL) as well as context about our work in the financial advice sector.
ASIC Deputy Chairman Peter Kell said, ‘People lost money due to unacceptable conduct by some planners at CFPL. We understand the stress experienced by the investors and their families affected by this behaviour. That is why we took action.’
The submission details that by early 2008 ASIC had identified widespread problems at CFPL and had required CFPL to implement a major compliance program to address these issues. ASIC later in 2008 received a complaint from anonymous whistleblowers within CFPL raising similar concerns about a specific adviser.
‘ASIC's submission acknowledges some processes in dealing with CFPL could have been quicker and more transparent, but we stand by the outcomes achieved,’ Mr Kell said.
ASIC’s actions resulted in:
On 20 June 2013 the Senate referred an inquiry into the performance of ASIC to the Senate Economics References Committee for inquiry and report. Read the full terms of reference.
Submissions to the Senate Committee are to be received by 21 October 2013.
Download
Senate inquiry into the performance of ASIC: Initial submission by ASIC
ASIC will make several submissions to the inquiry, including a major submission that addresses the full terms of reference and issue-specific responses to other submissions to the Committee.
This initial submission provides an overview of our actions on Commonwealth Financial Planning Limited (CFPL) as well as context about our work in the financial advice sector.
ASIC Deputy Chairman Peter Kell said, ‘People lost money due to unacceptable conduct by some planners at CFPL. We understand the stress experienced by the investors and their families affected by this behaviour. That is why we took action.’
The submission details that by early 2008 ASIC had identified widespread problems at CFPL and had required CFPL to implement a major compliance program to address these issues. ASIC later in 2008 received a complaint from anonymous whistleblowers within CFPL raising similar concerns about a specific adviser.
‘ASIC's submission acknowledges some processes in dealing with CFPL could have been quicker and more transparent, but we stand by the outcomes achieved,’ Mr Kell said.
ASIC’s actions resulted in:
- seven advisers banned
- a comprehensive compensation program that has seen more than 1100 investors receive $50 million to date, and
- CFPL entering into a court enforceable undertaking that required the group to reform completely the way it does business and deals with clients.
Background
On 20 June 2013 the Senate referred an inquiry into the performance of ASIC to the Senate Economics References Committee for inquiry and report. Read the full terms of reference.
Submissions to the Senate Committee are to be received by 21 October 2013.
Download
Senate inquiry into the performance of ASIC: Initial submission by ASIC
