ASIC takes legal action against licensee

ASIC has commenced proceedings in the Federal Court of Australia against a financial advice provider for allegedly breaching the best interest duty obligations.

The regulator said in a statement that it has taken action against Wealth and Risk Management (WRM) and related companies Yes FP Pty Ltd and Jeca Pty Ltd (trading as Yes FS). WRM is licensed to advise retail clients about life risk insurance and superannuation products.

WRM authorises financial advisers, generally employed by WRM’s corporate authorised representative Yes FP, who provide personal financial advice to retail clients referred to them by Yes FS via the website yesfs.com.au.

ASIC alleges that on numerous occasions since December 2015, WRM advisers provided conflicted advice that is in breach of the best interests obligations contained in the Corporations Act.

It also alleges that WRM did not do everything necessary to ensure that the financial services covered by its licence are provided efficiently, honestly and fairly, and did not take reasonable steps to ensure its representatives comply with financial services laws.

Further, Yes FS allegedly contravened the Corporations Act by reportedly carrying on a financial services business without holding an AFSL.

Yes FS also allegedly engaged in misleading and deceptive conduct, while WRM, Yes FS and Yes FP engaged in “unconscionable conduct in connection with the supply or possible supply of financial services”, ASIC said.

The first hearing of the matter is listed before the Federal Court of Australia on 31 March 2017.

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