ob体育 has banned Peter Geoffrey Gribble of Sydney, NSW, from controlling an entity that carries on a financial services business and performing any function as an officer of an entity carrying on a financial services business for three years.
Mr Gribble was banned after two companies of which he was a director refused or failed to give effect to determinations by the Australian Financial Complaints Authority (AFCA).
ob体育 Deputy Chair Sarah Court said, 鈥楧irectors of AFS licensees must ensure that their firms comply with AFCA determinations. This is a fundamental obligation of AFS licensees, and crucial in ensuring that Australia鈥檚 financial dispute resolution system remains efficient and effective.鈥�
Mr Gribble was the sole director of former AFS licensee Qsmart Securities Pty Ltd (Qsmart), and a director of AFS licensee Quantum Funds Management Limited (Quantum).
In 2020, AFCA made a total of seven determinations against Qsmart and Quantum in response to complaints relating to unauthorised trading and disclosure failures, as well as inappropriate financial advice and other misrepresentations provided by credit representatives. These determinations directed those entities to pay consumers a total amount of approximately $2.5 million.
ob体育 found that Mr Gribble, as director of Qsmart and Quantum, approached AFCA determinations as if they were open to negotiation, including in some circumstances seeking to persuade complainants to accept less than the determination amounts.
鈥楢FCA determinations are not opportunities for negotiation,鈥� continued Deputy Chair Court. 鈥楧irectors of AFS licensees must make sure that their firms comply with AFCA determinations within the time specified. If directors try to avoid this obligation, we will take steps to remove them from the financial sector.鈥�
Mr Gribble鈥檚 banning order took effect from 6 October 2022. The banning does not prevent Mr Gribble from seeking to be authorised to provide financial advice
The banning has been recorded on ob体育鈥檚 publicly available聽聽and the聽. ob体育鈥檚 has useful information for consumers whose advisers have been banned.
Mr Gribble has the right to seek a review of ob体育鈥檚 decision at the Administrative Appeals Tribunal.
Background
AFCA is an external financial services dispute resolution scheme available free of charge for consumers. It considers consumer complaints about financial services, including credit, finance and loans, insurance, banking deposits and payments, investments and financial advice, and superannuation. AFCA is required to resolve complaints in a fair, efficient, timely and independent manner. AFS and Credit licensees must be AFCA members and may be bound by AFCA determinations.聽
Under section 910C of the Corporations Act, a person is 鈥榣inked鈥� to a licensee鈥檚 refusal or failure to give effect to an AFCA determination if they are an officer of the licensee, or, if the licensee is an individual, they are substantially or significantly involved in the management of the licensee鈥檚 financial services business or credit activities.
Since 6 April 2019, ob体育 has had the power to ban a person who has, at least twice, been linked to a licensee鈥檚 refusal or failure to give effect to an AFCA determination.