National Advice Solutions appeared before the court on Monday, 21 March, charged with 11 offences of offering to issue or sell a financial product via unsolicited phone calls.
ASIC alleged that the firm made cold calls to 11 consumers between August 2019 and June 2020 and encouraged them to move their superannuation into different products.
At the time of the alleged offence, the maximum penalty was $133,200 per breach. Though there were changes to the anti-hawking regime on 5 October last year, the charges are brought under the previous anti-hawking provisions given the alleged offences took place before that date.
The matter, which is being prosecuted by the Commonwealth Director of Public Prosecutions, has been listed for a mention hearing on 16 May 2022.
National Advice Solutions have been contacted for comment.
We often hear from clients about legit advice firms cold calling for “better returns” etc etc. Full force to apply here frankly, as most consumers would not know if fraud slapped them in the face.
seems extremely harsh. relying on previous anti hawking provisions for 11 phone calls ??. Looks like Asic is just looking for another scalp.
more likely… they made thousands, but only had 11 (so far) to ping them on. ASIC banning surely wont be far away.
Actually not the case. There would be many more instances but ASIC will limit the number of cases brought forward for prosecution as there is no point in investigating every single case and there will be a limitation on penalty applied.
Or you could look at it that they broke the law and the penalties are there for a reason, I have had clients called by firms like this and it is a dangerous practice
Very interesting. 11 calls over 11 months! I used to make 10 a day! This entire industry has been built on prospecting for clients. I reckon a large percentage of Australians only have insurance because we tapped them on the shoulder and made the suggestion. That is certainly the case for the 1000’s I insured and so many were grateful when claims followed. People are just starting to buy insurance now.
It’s not 1978 anymore. There is a reason this practice has been outlawed
Yes back in the good old days when you could prospect for clients and “sell” the idea and good sense to have adequate risk cover, it was challenging and far more exciting if not diificult at times.
Most people are asleep when it comes to good financial planning so there was some consumer benefit to this approach.
Of course we had some who abused the strategy and bad outcomes as a result but I notice that still happens on occasions regardless of all the compiance changes.
Now it is completely regulated and controlled so there isn’t much ability to attain new clients except by referral or advertising.
The industry was also built on charging people ongoing fees and not providing any service. Not everything that was done in the past should be done in the future.
As far as I am aware – Product Providers continue to do this – so much for a Profession I guess?
They are so dodgy and deserve full force of the law. They do not represent the profession we’re striving for.
Great work , soon there will be no advisers or any AFSL left.
Not sure cold calling to rollover super funds is where this industry/profession is heading anyway. That is sales not advice
That’s funny, that’s what a rather large industry fund have been doing…though they’d probably consider it “luke warm” calling as they’ve called past members encouraging them to come back…
How so? If you feel that this is the right way to approach new clients then you are part of the problem
isn’t that what ASIC, Treasury, the ISN and every politician has been rooting for these past 5 years? They will soon get what they wished for.
Can the last adviser please turn the lights off on the way out!
Probably “advisers” won’t have much to worry about….people merely flogging products might think twice
if this is how you think… you are part of the problem, not the solution.
Hopefully there will be no advisers or AFSL left that think it is ok to cold call people and tell them they would be better of switching funds before they knew any of their details. I guess it can be hard top get out of the sales mindset for some.