The Financial Services and Credit Panel (FSCP) has made a registration prohibition order against financial adviser Stephen Rogers from 7 December 2023 until after 6 December 2025.
Mr Rogers was found to have given non-compliant advice to a client and acted in a way that was misleading or deceptive or likely to mislead or deceive the client. In the circumstances, Mr Rogers inappropriately:
- used a scaled advice model that scoped his advice to the client to exclude the suitability of an SMSF or the suitability of an SMSF investing into products related to Mr Rogers’ licensee; and
- used a rate of return in the benefit comparison in his statement of advice.
Mr Rogers has had his registration as a financial adviser cancelled and is prohibited from being registered with ASIC. He is also prohibited from giving personal advice to retail clients on relevant financial products during the prohibition period.
The FSCP makes administrative decisions on matters referred to it by ASIC that relate to the conduct of financial advisers. The FSCP is a pool of industry participants, appointed by the Minister, that ASIC draws upon when forming individual sitting panels. Each sitting panel comprises an ASIC staff member and at least two members of the FSCP.
The FSCP operates separately from, but alongside, ASIC’s existing administrative decision-making processes, with the aim of responding to lower-level misconduct and ensuring that minor misconduct does not go unaddressed.
The FSCP has the power to make a registration prohibition order under s921L(1)(c) of the Corporations Act.
The FSCP’s decision has been published on the FSCP Outcomes Register on the ASIC website.
Background
The requirement for financial advisers to be registered was introduced by the Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021, in response to Recommendation 2.10 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
While the date by which financial advisers must be registered has been extended to 1 February 2024, it does not affect any registration suspension or prohibition order made by the FSCP under s921L(1)(b) or (c) of the Corporations Act.
NOTE: ASIC convened a sitting panel of the FSCP for Mr Rogers as part of ASIC’s cross-sector priority to deter cold calling superannuation switching business models which has the broader aim of protecting consumers from cold calling practices that induce inappropriate superannuation switching and result in the erosion of members’ superannuation balances.
More information
For further information on the FSCP and the financial adviser registration requirement see:
- Regulatory Guide 263 Financial Services and Credit Panel for the principles and processes relating to the FSCP
- Information Sheet 276 FAQs: Registration of Relevant Providers
- Information Sheet 277 Registration of relevant providers: Guidance on making declarations
- ASIC extends date for financial adviser registration requirement
- ASIC Corporations (Registration of Relevant Providers) Instrument 2023/490
Editor's Note
On 21 December 2023, Mr Rogers filed an application for review of the Financial Services and Credit Panel decision with the Administrative Appeals Tribunal. ASIC was notified by the Tribunal of the application on 18 January 2024.