In a statement, ASIC said the EU from Michael Melamed follows its wider review in 2014 into life insurance advice.
ASIC claims that between March 2013 and January 2015, Mr Melamed was providing advice that did not meet standards and failed to comply with financial services laws.
For instance, ASIC said Mr Melamed failed to maintain accurate records in relation to the provision of financial product advice and failed to make reasonable inquiries into his clients’ relevant objectives, financial situation and needs.
Further, Mr Melamed failed to conduct a “needs analysis” to determine if the amount of insurance cover sought was in his clients’ best interests, ASIC said.
He also recommended insurance cover for clients unable to afford insurance premiums and failed to demonstrate the ability, professional skills and knowledge required to competently provide financial services, the statement said.
ASIC said Mr Melamed acknowledges that the concerns about his advice are “reasonably held”.
Mr Melamed will have to notify ASIC and undergo prescribed additional training in the provision of financial product advice should he seek to re-enter the financial services industry after the three year period.
