The corporate regulator has banned a former financial adviser for failing to act in his clients' best interests.
ASIC announced today that it has banned Stephen Michael Beckton, a financial adviser and former authorised representative of non-aligned licensee Sentinel Private Wealth Pty Ltd, from providing financial services for five years.
An ASIC review of Mr Beckton's advice found that he had recommended clients change superannuation and insurance products in circumstances where there was little benefit, but significant cost, to the client.
This advice benefited Mr Beckton through increased adviser fees and commissions he received from insurers, ASIC said.
Mr Beckton was found to have: failed to act in the best interests of his clients; failed to provide appropriate advice to his clients; failed to accurately disclose the fees associated with his advice; and failed to put the interests of his clients ahead of his own, when he knew that there was a conflict of interest, ASIC said.
ASIC deputy chair Peter Kell said, “Financial advisers must put their clients' interests ahead of their own. Super switching that provides little benefit to the client but is very profitable to advisers is clearly unacceptable.”
Mr Beckton was a representative of Sentinel Private Wealth from September 2013 to October 2016.
Mr Beckton has a right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
The shadow treasurer says advisers can’t be blamed for the high cost of advice as they struggle with increased levies ...
The advice network says it has upgraded its expectation for cost savings to $4 million as a result of Diverger’s ...
Single adviser-led firms continue to expand their footprint in the Australian advice ecosystem, Adviser Ratings research ...
Never miss the stories that impact the industry.
Get the latest news! Subscribe to the ifa bulletin