Brisbane-based Christopher Young, a former authorised representative of Affinia Financial Advisers Pty Ltd, has been banned from providing financial services for five years.
ASIC surveillance found that Mr Young had failed to provide sufficient detail in statements of advice to enable his clients to make informed decisions about his advice, keep proper records, and in some instances created false or misleading client file notes.
ASIC also found that Mr Young failed to make reasonable inquiries into clients’ relevant objectives, financial situation and needs, determine if the amounts of insurance cover he recommended were appropriate and if premiums were affordable and payment could be maintained by clients, as well as conduct a reasonable investigation into financial products that might achieve the objectives of the clients.
Mr Young also failed to provide the required information about his remuneration and other relevant interests when providing financial product advice, and failed to demonstrate the ability, professional skills and knowledge required to competently provide financial services.
“The business model of simply ‘selling’ life insurance without complying with the legal and regulatory obligations will not be tolerated by ASIC. Advisers who do so will be removed from the industry,” ASIC deputy chairman Peter Kell said.
The corporate regulator’s action was a response to information it received from the licensee, Affinia, regarding potential systemic concerns about advice provided by Mr Young in relation to insurance and superannuation products.
