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This week in penalties...19 September-23 September

Friday 23 September 2022


$14 million in penalties for fees for-no-service

This week the Federal Court ordered five companies that were part of the AMP group to pay $14. 5 million for the fees for no service.   

The Australian Securities and Investments Commission (ASIC) Deputy Commissioner Sarah Court said in formal statement this week, “ Superannuation trustees should treat the penalty imposed today as an important reminder to maintain robust internal governance and assurance arrangements. Trustees are responsible for ensuring they only deduct fees from member accounts for services actually provided. If they fail in this obligation, they could face significant penalties.”

ASIC alleges that AMP was aware the fees were being charged without services being provided but they did not take appropriate steps to stopping it from happening.

Financial Adviser making unauthorised transactions

Former financial adviser John Wertheimer pleaded guilty one charge of engaging in dishonest conduct in 2020. this involved 48 unauthorised transactions in May. After, the former financial adviser lodged five investment instruction documents which contained forged signatures between the end of May and the end of the July 2020.

Breach of the best interest duty

The Federal Court has ordered Dixon Advisory to pay $ 7.2 million six representatives failed to the act in their client’s best interest between the period of the October 2015 and May 2019. 

The Australian Securities and Investments Commission (ASIC) Deputy Chair Sarah Court said in official statement, “The contraventions were not the result of isolated or unauthorised conduct of the representatives. Six representatives committed the contraventions over a period spanning some three and a half years.”