Each year, ASIC receives over 20,000 reports of misconduct from liquidators, auditors, financial service providers and the general public which are all received, acknowledged, analysed, assessed and recorded by ASIC’s national Misconduct and Breach Reporting Team.

ASIC Commissioner, Peter Kell said, ‘All reports of misconduct provide us with valuable information but not every matter brought to our attention requires us to take action. ASIC has produced these information sheets to assist the public and to explain how such cases are handled’.

Mr Kell noted that ASIC weighs every report of misconduct against four key questions:

1. What is the extent of harm or loss?
2. What are the benefits of pursuing the misconduct?
3. How do other issues, like the type and seriousness of the misconduct and the evidence available, affect the matter?
4. Is there an alternative course of action?

ASIC has released five information sheets covering:

• How ASIC deals with reports of misconduct (Information Sheet 153)
• Your investments: Frozen funds and hardship payments (Information Sheet 159)
• Disputes about employee entitlements (Information Sheet 160)
• Disputes about goods and non-financial services (Information Sheet 161), and
• Disputes between officeholders and/or members of small proprietary companies (Information Sheet 162).

‘In keeping with ASIC’s move to increase transparency around our processes, these information sheets explain how we approach and assess these reports as part of our overall approach to regulation. They also explain what other remedies or avenues of redress that the public should consider,’ Mr Kell said.

‘We have also published Information Sheet 153 How ASIC deals with reports of misconduct as a brochure to help people better understand the factors we consider in our assessment of their misconduct report at the first point of contact. It outlines the timeframe in which we will communicate our decision on whether we will or will not consider a matter further.

‘Every piece of information we receive, whether it be a tip-off, complaint or report of misconduct is assessed by ASIC. From that initial assessment matters may be referred for surveillance or investigation. If they are not, we identify other things the person concerned should do. But all information received by ASIC is recorded, assessed and valued.

‘Not every matter referred for further consideration will result in an investigation. We have a number of regulatory tools available to us, including referring a report of misconduct to a specialist surveillance team within ASIC to seek compliance with the law we administer,’ Mr Kell said.

To coincide with the release of these publications, ASIC has also redesigned its online material that deals with reporting misconduct.

The web pages are designed to get people to the right information at the right time and ultimately to a resolution. The information sheets support this by giving appropriate options for a course of action in common dispute circumstances.

The brochure, online material, information sheets and the recently updated online report form provide plainly stated information to guide people through the process of complaint resolution and, where indicated, reporting misconduct.

The post ASIC releases information about reporting misconduct appeared first on AdviserVoice.

ASIC’s action against Mr Aloisi follows its investigation into allegations of misconduct during his employment as an authorised representative with AMP Financial Planning Pty Limited from 1 January 2004 to 5 August 2009 and AMP GI Distribution Pty Limited from 1 January 2004 to 7 August 2009.

ASIC found that between January 2007 and 4 August 2009, Mr Aloisi failed to comply with financial services laws by:

• engaging in dishonest conduct by submitting or causing to be submitted to AMP Life Limited (AMP Life), approximately 55 applications for life insurance and/or income protection insurance which were in the names of clients who were either not genuine, or in the name of individuals where there was no genuine intention to effect the insurance policies

• engaging in misleading or deceptive conduct by submitting or causing the applications to be submitted which resulted in the payment by AMP Life of commission of approximately $700,000 which he then used for his own purposes.

AMP Life has recovered all the commission dishonestly obtained by Mr Aloisi. No clients of AMP suffered any loss as a result of Mr Aloisi’s conduct.

ASIC’s banning of Mr Aloisi reinforces the Commission’s commitment to assisting and protecting retail investors and financial consumers.

ASIC acknowledges the assistance of AMP during its investigation. Mr Aloisi’s conduct was brought to ASIC’s attention by AMP Financial Planning.

Mr Aloisi has the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.

The post ASIC bans Sydney financial adviser appeared first on AdviserVoice.