The corporate regulator has cancelled the AFSL of Wealth and Risk Management after it was “restrained from carrying on a financial services business” for 18 years following a case heard in the Federal Court of Australia.
The cancellation became effective from 14 May 2018, ASIC said in a statement.
Wealth and Risk Management and two related businesses were previously ordered to pay penalties of $7,150,000 for offering “cash payments to financially vulnerable clients” through an agreement that saw the client enter an advice agreement and pay fees out of their superannuation account.
“This process often resulted in a substantial erosion of the client’s superannuation balances,” ASIC said at the time.
Yeah, unfortunately any smaller firm operating like the banks have would have had their AFSL cancelled on the spot. Too big to fail they say…
agree totally – all the regulators do is chase the small players. who have no resources, cant pay the legal bills and give up. but regulators leave the big players…..
ASIC have been running this case for a while & the media have soaked it up. It gives the impression that ASIC is active in overseeing all types of businesses, when in reality the media coverage over 18 months or so has all been the same case.
How many years suspension do you the give CBA .About 1 million?
how many EU’s can an institution have ? 1 billion ? probably
they can’t touch the big players
As banks exit financial advice I guess this will be a reoccurring theme for consumers wanting independent financial advice
May have been easier to become a Bank and set up another company called Commonwealth Financial Planning. That way you’d still have your AFSL license.