The Disciplinary Committee is an independent body. It conducts disciplinary proceedings arising from complaints about AFAs relating to breaches of the Code of Professional Conduct for AFAs.
The Committee may take a range of actions as a result of proceedings, including cancellation of authorisation, suspension, and censure.
They are made up of between 4 and 6 members, including the Chairperson. The membership must include at least one member who works, or has worked, in the financial adviser industry, at least one member who is independent of the financial adviser industry, and at least one member who is a lawyer with no less than 7 years legal experience.
The FADCs functions are:
To conduct disciplinary proceedings arising out of complaints about Authorised Financial Advisers (AFAs) in relation to breaches of the Code of Professional Conduct, as referred to the FADC by the FMA
To consider and impose appropriate penalties that may range from recommending that the FMA cancel an AFA's authorisation, to imposing a fine of up to $10,000 as a result of disciplinary proceedings.