The corporate regulator has permanently banned a Queensland financial adviser after an investigation found he failed to provide appropriate advice.
ASIC said in a statement it has permanently banned former AMP Financial Planning representative Damian O’Rourke of Brisbane from providing financial services.
Mr O’Rourke failed to provide appropriate advice, failed to provide clients with statements of advice and borrowed significant sums of money from clients, most of which were not repaid.
Mr O’Rourke was a representative of AMP Financial Planning from 1983 until 10 April 2014.
ASIC said it found that Mr O’Rourke failed to provide a statement of advice to 31 clients when he advised them to apply for income protection insurance, life insurance, trauma insurance and/or total and permanent disability insurance as a new product, or to replace an existing insurance product.
Mr O’Rourke failed to make reasonable inquiries in relation to a client and failed to provide that client with appropriate advice in relation to insurance and super products in September 2012, the statement said.
Mr O’Rourke also failed to act in the best interests of a client in relation to insurance and super product advice he provided in November 2013 and failed to give priority to that client’s best interests over his own.
ASIC also found reason to believe Mr O’Rourke was not of good fame and character as he borrowed over $2 million from clients and others in the circumstances where: only around 10 per cent of the total amount loaned was paid, he did not ensure clients were provided with independent legal and financial advice, he did not document all of the loans and he sought loans from clients when he knew he had not repaid earlier loans.
ASIC deputy chairman Peter Kell said, “Financial advisers must act in the best interests of their clients.
“ASIC will take action against financial advisers who do not comply with their obligations.”
ASIC said Mr O’Rourke has the right to appeal to the Administrative Appeals Tribunal for a review of its decision.
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