ASIC said in a statement that it has banned Mateen Mohammed, of Calamvale, Queensland, from providing financial services. He was an authorised representative of Synchron between 1 July 2010 and 22 April 2015.
Surveillance found that Mr Mohammed did not act in the best interests of his clients by failing to make reasonable inquiries into clients’ relevant objectives, financial situation and needs, as well as conduct a reasonable investigation into financial products that might achieve the objectives of the clients, including their existing superannuation and insurance products.
Mr Mohammed also submitted an insurance application without his client’s knowledge and, as a result, misled or deceived the insurer as to his authority to do so, the statement said.
ASIC deputy chairman Peter Kell said: “Any advice to switch existing life insurance and superannuation products must be in the client’s best interest.
“Where there is nothing in the client’s relevant circumstances to indicate that the switch would be beneficial, ASIC will conclude that the client is not in a better position.”
Mr Mohammed has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision. ASIC said its action against Mr Mohammed is part of ongoing enforcement and regulatory action following its review of life insurance advice.
This adviser was terminated within one month by Dover because of a poor compliance attitude. He did not provide any advice to any clients while he was with Dover: our 100% checking of SOAs before they are sent to clients is a very effective compliance strategy…
Terry did you do any compliance checks from previous licensees before authorising this adviser? Or look at previous history?
The ASIC statement says, “Mr Mohammed was an authorised representative of Synchronised Business Services Pty Ltd during the relevant period, from 1 July 2010 to 22 April 2015.”
Not saying Synchron condone that behaviour. Just trying to clarify the relevance.
It appears that he was an adviser with Synchron from 1 July 2010 and 22 April 2015 and then he was an adviser with Dover and Evermore for a total of approx 2 months later in 2015 when he ceased advising.
I imagine that the issues arose during the almost 5 years with Synchron and that is was why they were specifically mentioned.
Thanks for clarifying the reasoning Susie. Just don’t like seeing Synchron attached to this type of adviser behaviour. I must say too though – its most unlike ASIC to report all the facts.
Is this Warren B or Mr Trapnell?
From the things I hear about Synchron this is very much the theme…
The licensee should have picked up the advice, kicked him out and reported him to ASIC. This behaviour brings a bad name to all advisers
No record of him on the adviser register where he is recored as being an adviser with Dover and Evermore.
https://www.moneysmart.gov.au/investing/financial-advice/financial-advisers-register
@warren Probably because saying he was a former Dover or Evermore adviser since leaving Synchron was’nt quite as likely to elicit the same attention?
I have a question – what was this adviser doing with himself between now and April 22, 2015 that warrants specific attention to him being a former Synchron Adviser?
From my own opinion – and that’s all it is, I’ll go straight into bat for my Licensee and state that the alleged behaviour reported in this article is nothing that Synchron condones, promotes or supports in any way, shape or form from its authorised representatives.
Again, this is strictly my opinion and not expressed for and/or on behalf of Synchron.
If he was doing whilst an AR of Synchron then it’s very relevant and warrants specific attention. If not, then I agree it’s poor form to mention it.