ASIC bans two former NextGen directors for AFCA non-compliance
ASIC banned former NextGen Financial Group directors Brookes and Turco for three years for failing to give effect to AFCA determinations.
ASIC's action underscores personal accountability for directors when firms ignore external dispute resolution outcomes. It signals intensified enforcement against boards that fail to remediate consumer complaints, reinforcing AFCA determinations as binding obligations rather than advisory outcomes.
Highlights director liability risk tied to complaint remediation and AFCA compliance in Australian financial services.
Action Required
Review governance controls ensuring timely compliance with AFCA determinations and escalation of unresolved complaints.
Precedent for individual accountability enforcement linked to dispute resolution failures.
Assess board-level oversight of AFCA determination compliance. Confirm tracking, escalation, and remediation processes are documented and tested. Ensure director training covers personal liability under s920A.
“ASIC has banned former NextGen Financial Group Pty Ltd directors Nicholas Duncan Jeremy Brookes and Vitorio Vincenzo Turco from controlling or being involved in the management of a financial services business for three years. ASIC found that Mr Brookes and Mr Turco were each linked to NextGen's refusal or failure to give effect to at least two AFCA determinations.”