FADC hears three cases but issues no decisions

It was the second time the committee has sat, after adjourning three cases earlier in the month. While the first meeting was over in seven minutes today’s hearings lasted around 40 minutes.

Rodney Bourke-Shaw, Stephen Musaphia and Graham Beecroft were referred to the FADC by the Financial Markets Authority.

Musaphia, whose case was adjourned in the first FADC session, is now awaiting a decision. All the papers have been filed and his lawyers are proposing a supervision period, in which the AFA who wants to buy his business will oversee its operations before the transaction occurs.

They propose a six-month supervision period but the business is expected to sell well within a month.

The committee asked whether the FMA was satisfied that there were procedures in place to deal with any potential change of heart from Musaphia on his decision to leave the industry.

It then adjourned for a decision to be delivered. The complainant in Musaphia's case is not the client. FADC chairman Bruce Robertson said confidentiality issues would be dealt with in her interests.

The facts in Musaphia’s case had been agreed but have not been made public. Robertson said a decision would be issued as soon as possible.

Graham Beecroft
The FMA offered no evidence in the complaint against Graham Beecroft even though it had laid charges. The alleged breaches were dismissed and there were no issues raised about costs.
Beecroft has voluntarily given up his AFA registration.

Rodney Bourke-Shaw
Bourke-Shaw's case has been adjourned for two weeks, awaiting more submissions from his lawyers. The FMA has filed its submissions. The case will be decided on the papers.

Comments from our readers

On 20 August 2013 at 12:00 pm David Whyte said:

Why was Graham Beecroft put through this adverse public experience? What about the errant KiwiSaver product providers being granted anonymity by the regulator? Something not quite right here.

On 21 August 2013 at 7:11 am Adam Smith said:

Oh David, David, David. You should know the answer yourself. The institutions have much more clout than a poor single AFA. Also there has been so much to do about adviser regulation that FMA needs a named scalp or two to show the public why the costly exercise for all advisers was so, so necessary

On 21 August 2013 at 7:57 am Murray Weatherston said:

If you read the decisions, the Committee has actually found that Rodney Bourke-Shaw had breached Code Standards 6, 8, 9 and 12. There is no explanation of the substance of those breaches yet. The penalty to be imposed is still to be decided.

FADC hears three cases but issues no decisions

Three financial advisers' cases came before the Financial Advisers Disciplinary Committee (FADC) but none of the details of what the allegations were about where revealed.

Friday, August 16th 2013, 11:33AM 3 Comments

Comments from our readers

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