Decisions still pending on FADC referrals
Investigations continue into two possible referrals to the Financial Advisers Disciplinary Committee.
Thursday, January 28th 2016, 6:00AM
by Susan Edmunds
The Financial Markets Authority revealed in a report on its investigation and enforcement activity for the year ended June 30, 2015, that it had investigated two cases as potential referrals to the Financial Advisers Disciplinary Committee, the body that considers advisers’ breaches of the Code of Conduct. It could give no further information.
Good Returns understands the FMA is still yet to make a decision.
Institute of Financial Advisers chief executive Fred Dodds said it was unfortunate.
“When one hears of a possible case and then it does drag out it always allows the rumour mill to engage a few more gears and comments of 'aren't they slow' - 'do they have a case', 'who are they' always get the grapevine going. It has certainly been a while.”
Adviser Murray Weatherston said the FMA would have been better not to have said anything rather than let it drag on for six months.
“You would think it would happen much more quickly than this seems to be happening. I would really only expect an announcement if a charge was imminent.”
Michael Dowling, president of the Institute of Financial Advisers, said it was hard to know whether the time taken was appropriate without understanding the specifics of what was being investigated.
“Any new process has to be tested.”
He said it could turn out that if it was decided it had not been not timely or effective, the process would need to be reviewed.
The Financial Advisers Disciplinary Committee has not had many cases to deal with since its inception.
It has issued seven decisions, the most recent in 2014 relating to “Adviser X”, whose QFE took action against him over record-keeping concerns.
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