Ben Rickman from Victoria who was employed by Macquarie Equities between July 2012 and June 2014 gave advice to his clients which involved the drafting of legal documents, such as wills, and the giving of legal advice about those documents. Mr Rickman also represented that he was “solicitor/conveyancer” in a property purchase transaction.
Mr Rickman has no legal qualifications and is not licensed as a conveyancer.
ASIC found that the poor results of file reviews conducted by Macquarie and the fact that Mr Rickman acted outside the scope of his Macquarie Representative Authority and employment agreement demonstrated that he does not have the ability, professional skills or judgment to competently provide financial services.
Further, ASIC found that Mr Rickman demonstrated a lack of understanding regarding the role of a financial adviser.
Mr Rickman has appealed to the Administrative Appeals Tribunal for a review of ASIC’s decision.
The outcome is a result of ASIC’s Wealth Management Project. The project was established in October 2014 with the objective of lifting the standards of major financial advice providers. The Wealth Management Project focuses on the conduct of the largest financial advice firms (NAB, Westpac, CBA, ANZ, Macquarie and AMP).
[quote name=”Melinda Houghton”]hmm, time for ASIC to look at Accountants who give financial advice perhaps?[/quote]
Yes they don’t seem to understand basic regulation..
See below..
Your point was it had nothing to do with ASIC, sorry it does, he is a Fin Adviser and is regulated by ASIC.
AS an accountant i’m sure you have a loose grasp on Financial services Law. But he has breached his duty as a Financial Adviser, DO you agree?
If you don’t maybe read the ASIC regulatory guides about giving advice and what a planner can and can’t say. Maybe even talk to the FPA and ask their opinion, or a licensee that follows the law…
Acting outside of his authority is an offence under ASIC regulations. Fact.
He is authorized under Law to give financial planning advice not legal advice.
He has breached this so is no longer able to practice as an FP.
He is not qualified, educated or insured to give legal advice so why should he be able to not act in a client best interst. Another legal requirement of an adviser.
And it is interesting that you are saying that you are right and ASIC don’t know their own regulations?
Your question was
Why can’t a person provide legal services to clients outside of their proper authority.
I answered your question and to be honest your further reply shows the cockiness of some people in our industry and a complete disrespect for regulation.
Just to confirm, first, I am a director of Access Law Group (http://www.accessawgroup.com.au). I am the Resopnsible Manager of the SMSF Expert Pty Ltd AFSL 445113. I am a CA & CPA as well as a registered tax agent. So YES my firm does provide both accounting services and legal services to clients of my AFSL. Those services are also OUTSIDE of the scope of any PA’s that I give. Do I still need to be careful? You say he has breached a “number of acts” – can you name a few of them and give references to sections? I have already mentioned that he has breach the Legal Professions Act of his relevant state. But that is a matter for the Law Society and ASIC should have referred it to THEM.Section 766B of the Corps Act specifically excludes legal advice and tax/bas agent services. It does talk about a “lawyer” but doesn’t define “layer” the way it does tax/bas agents.
As I said their process was wrong. They should have refered the matter to the relevant law society. The law society could have them prosecuted and then they would have been prosecuted for an offence of dishonesty. Then they are out for life.
Now instead, I would suggest the person has sought advice and his solicitor has recommended the appeal due to ASIC not following due process.
[quote name=”Peter Johnson”]Probably the right outcome but the process seems faulty. Why can;t a person provide legal services to clients outside of their proper authority (Just as accountants do all the time!!!!). If the person is not a solicitor with a practising certificate that is an issue for the relevant state legal practitioners act, it has NOTHING to do with ASIC.[/quote]
Incorrect he has breached numerous legal acts relating to his job as a financial adviser.
Would you be happy to take advice from someone only to find out they aren’t qualified, educated or insured?
I assume by your response you also do this. I’d say be careful..
hmm, time for ASIC to look at Accountants who give financial advice perhaps?
Probably the right outcome but the process seems faulty. Why can;t a person provide legal services to clients outside of their proper authority (Just as accountants do all the time!!!!). If the person is not a solicitor with a practising certificate that is an issue for the relevant state legal practitioners act, it has NOTHING to do with ASIC.