Adviser pays to clear charges
The IFA member was charged with breaches relating to making a false or misleading statement and failing to make a reasonable investigation into the suitability of the financial product recommended. Both charges were dismissed by the Disciplinary Committee in July.
The adviser sought $17,999.16 in reimbursement of costs, but late last month the committee ruled that costs would not be awarded to the adviser, stating that the common law rules of natural justice did not override the contractual relationship between the IFA and its members. This decision followed consideration of an English Court of Appeal decision, the case of Baxendale-Walker v Law Society, where award of costs was denied for a solicitor who had faced charges brought by the Law Society, which were in part dismissed.
The adviser argues she was forced to prove herself innocent at the tribunal, rather than being proven guilty and fears the latest ruling will force many advisers to plead guilty at the early stages of a complaint to avoid a lengthy and costly legal process.
IFA president Lyn McMorran says the ruling highlights that the Disciplinary Committee is "not a puppet" of the institute and that there was no bias towards finding a guilty verdict.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[Weekly Wrap] KiwiSaver in play; but outcome unclear](https://goodreturns.publit.io/file/c_fill,w_300,h_200/0ad582e4-c9a3-4692-bbe2-62d928f77fd2.jpg)