According to an ASIC insolvency notice, the ATO filed an application to wind up Victoria-based Cambridge Financial Planning earlier this month. The Supreme Court of Victoria will hear the order on 16 September, the notice said.
The ATO declined to comment about why the order was submitted.
Speaking to ifa, a Centrepoint Alliance spokesperson said Cambridge Financial Planning was licensed under PIS until the firm’s director Seamus O’Brian was found to be giving advice on products outside of the APL.
“PIS reported [to ASIC] that Mr O’Brien provided advice to clients about products that were not on PIS’s approved list of products, that he did not consider alternate products or strategies when providing advice to clients and that he demonstrated a poor level of record keeping and collection of client details,” the spokesperson said.
“PIS terminated the authorisation of Mr O’Brian on 16 December 2013.”
Late last year, ASIC announced it had accepted an enforceable undertaking from Mr O’Brian, after “he failed to meet his obligations as a financial adviser”.
According to an ASIC statement, the regulator was concerned that Mr O’Brian failed to demonstrate a reasonable basis for the advice provided and failed to adequately provide replacement product advice to clients.
Further, ASIC found Mr O’Brian did not comply with the record-keeping obligations relating to personal advice or comply with the State of Advice requirements.
As part of the enforceable undertaking, Mr O’Brian had agreed not to provide financial services in any capacity for a minimum of one year.
If he decides to re-enter the financial services industry after this period, Mr O’Brian will have to adhere to strict supervision requirements for one year and have each piece of advice audited by his new licensee before it is provided to clients.
Reality, it happened about 15 months ago. What was most absurd is that in the Fact Finder (and SOA) the client only wanted advice on I.P. and Super yet ASIC started questioning me as to why I also didn’t recommend Trauma cover as an alternative strategy. As you saw yourself, they just had to put their two cents worth into your SOA by making a comment regarding the risk profiling.
Take a look at ASICs own example SOA and you will see how woeful and breaching it is, very watered down and doen’t address the “Best Interests” duty at all.
I couldn’t agree more with Arjie
ASIC is a regulator and their role is to regulate the industry…don’t expect them to be your friend.
@Edward – Out of curiosity how long ago? Had the same thing about 3 years ago and ASIC were happy with pretty much everything other than not enough information in SOA on risk profiling (Risk profiling done accurately and comprehensively just needed to include more info to client in SOA). They also basically said not to do any execution onlys ever again.
Found they pretty good to deal with. Maybe it is luck of the draw with who you deal with from ASIC. Then again I am a nazi with file noting everything.
I was once subjected to a random ASIC review/audit via our licensee. Let me tell you that you can provide the best reasonable basis for any advice AND do so in the customers best interests and ASIC will still find a way to scrutinize every word written in the SOA and question every recommendation you make to the client. Even after doing that they will start asking you double-meaning trip up questions about “Why didn’t you also recommend this, that and the other?” Their reviews are very one-sided and even if you tick every box they won’t let you get away with being the “winner” of the review they will still make some recommendations about what you could have / should have done better and how you need to review your practices etc. ASIC do not work “with” retail advisers they are out there to catch you out and put you under the gun than hang you. This has also been the experience of other colleagues who have been through a similar unpleasant experience!
Working in the clients best interest’s at all times is paramount to being a licenced adviser.
Kind regards,
Adrian Totolos.
Business Analyst.