FADC hands down its punishment in non-disclosure case
The Financial Advisers Disciplinary Committee (FADC) has decided to censure the Auckland insurance adviser, but not name him. That means that he will have to disclose the breaches – which the FADC said were at lower end of the scale - to prospective clients for the next five years.
However, the adviser will retain permanent suppression.
The Financial Markets Authority, which prosecuted the case, originally sought censure and/or a fine, however it later submitted he should be named following online activity which had temporarily revealed the adviser's name. The FMA also argued the adviser showed no remorse.
The case, which has generated significant debate, is the first case of its type against an insurance adviser to be heard by the FADC.
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