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Another Fees for no Service Judgement
Fees for no service is on the regulator’s crosshairs again with the with Asgard Capital Management ordered to pay a $3 million penalty.
This ruling comes just short of a year since the securities and conduct regulator commenced what would be its fourth enforcement action as it pertains to fees for service.
The Australian Securities and Investments Commission (ASIC) highlighted that the federal court ordered that BT Financial had to pay $ 1.5 million and Asgard Capital financial for conduct between September 2014 and august 2017 which harmed over 400 people.
Deputy Chair Sarah Court said in an official statement, “Misleading statements were made to customers, who were also charged for services they did not receive. The licensed financial services industry has an obligation to ensure that their systems and processes are reliable, accurate and their customers must be able to have trust in them,” said ASIC.
ASIC highlighted that the conduct breached number of contraventions as it relates to the misleading and deceptive conduct and a requirement to provide fair and efficient financial services:
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ss 12DA(1) and
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12DB(1)(g) of the ASIC Act, and
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s 1041H
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s912A
Other the fee for service proceedings commenced by the regulator were Nulis and MLC as part of the National Australia Bank’s (NAB) wealth management division which has been concluded but the judgement has been reserved.
ASIC commenced proceedings against NAB for the FFNS for breaching the ASIC Act and the Corporations Act. The date of the court case is yet to be scheduled.
Last year, the regular commenced proceedings against State Super for charging over 36, 000 clients for financial advice not recorded.
At the time of commencement State Plus had already remediated $100 million to members that have been affected RSE licensee’s conduct.
Fees for no service case ended
While the other cases FFNS are in progress the securities regulator announced earlier these years that they ended their investigation related to FFNS.
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