Fong Financial Planners pleads guilty to dishonest conduct

In a statement on Monday, the corporate regulator revealed that on 24 March 2023, Fong Financial Planners pleaded guilty in the Perth Magistrates Court to three charges of dishonest conduct while carrying on a financial services business.

According to the Australian Securities and Investments Commission (ASIC), in 2014, while acting as an authorised representative of AMP, Fong Financial Planners engaged in dishonest behaviour by recording knowingly false information on forms submitted to AMP as part of client insurance applications.

“Fong Financial Planners intentionally failed to disclose all relevant information relating to the personal circumstances of the clients, including details of their health and medical history. Had this information been disclosed by Fong Financial Planners, further medical assessments and questionnaires may have been requested by AMP and exclusions may have applied to some of the insurance policies,” the regulator said.

It pointed out that the incomplete disclosure of the information by Fong Financial Planners meant the duty of disclosure owed by the clients to the insurer had not been met and they risked not being covered by AMP under the relevant policies.

Fong Financial Planners and its director, former adviser David Fong, were initially charged with 11 offences, but charges against Mr Fong and eight of the charges against the firm were discontinued following Fong Financial Planners’ pleas of guilty to the three charges above, ASIC said. 

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.