ASIC accepts EU from Clearview authorised rep
ASIC has accepted an enforceable undertaking from a Queensland-based ClearView Financial Advice representative after he failed to meet his obligations as a financial adviser.
The regulator found Mr Churchill's advice relating to the replacement of personal insurances did not meet the standards expected of a financial adviser and that he had failed to comply with financial services laws.
ASIC's review of client files found, in some instances, that Mr Churchill had:
• Failed to undertake adequate inquiries into the relevant personal circumstances of some clients to whom he made recommendations
• Failed in some instances to provide adequate replacement product advice to the client in the Statement of Advice, preventing the client from making an informed decision to switch insurance cover
• Inadequately demonstrated in some cases the benefits of a stepped or level premium
• Failed in some cases to consider the competing priorities of adequate insurance versus affordability, including the longer term impact of placing insurances within superannuation
• Limited the advice in some cases to exclude issues which cannot reasonably be excluded from the scope of advice.
Under the EU, Mr Churchill has agreed to undergo additional training in relation to the provision of financial product advice and must adhere to strict supervision requirements for 12 months and have each piece of advice audited by his authorising licensee before it is provided to the clients.