Over 70 financial services misconduct matters remain before the courts

In its update, ASIC confirmed that as of 1 January this year, ASIC had 28 criminal and 48 civil financial services enforcement matters still before the courts.

Specifically relating to financial advice misconduct, 10 criminal cases are before the court, as are six civil cases.

Other misconduct listed included credit (five criminal, 15 civil), insurance (three criminal, seven civil), investment management (six criminal, nine civil) and superannuation (four criminal, 11 civil).

Between July and December 2021, ASIC dealt with 32 enforcement matters in financial services, six of which specifically related to financial advice.

Meanwhile, nine were related to superannuation misconduct, three related to credit, two to investment management, one to insurance and 11 related to “other financial services” misconduct.

During that same period, ASIC recorded the following enforcement outcomes: $84.3 million in civil penalties imposed by the courts, 99 people or companies prosecuted for strict liability offences, 21 people or entities removed or restricted from providing financial services or credit, 31 people disqualified or removed as directors of companies and six people given custodial sentences and 10 people or companies given non-custodial sentences.

“During this period, ASIC continued to act against misconduct to maintain trust and integrity in Australia’s financial system and promote a fair, strong and efficient financial system for all Australians,” a statement released on Monday (28 March) read.

“ASIC commenced 21 civil penalty proceedings during the period and commenced court action targeting misconduct in insurance, superannuation and markets as well as system failures within major banks.”

The regulator also confirmed that all of its financial services Royal Commission investigations are now complete, with 10 proceedings still before the court.

As of 31 December 2021, the total penalties imposed from ASIC proceedings amounted to $110.67 million.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.