Christopher Young, a former authorised representative of Affinia Financial Advisers Pty Ltd, has been banned from providing financial services for five years.
ASIC surveillance found that Mr Young had failed to: provide sufficient detail in Statements of Advice to enable his clients to make informed decisions about his advice; keep proper records; and in some instances, had created false or misleading client file notes.
ASIC also found that Mr Young had failed to make reasonable enquiries into clients’ relevant objectives, financial situation and needs; determine if the amounts of insurance cover he recommended were appropriate and if premiums were affordable and payment could be maintained by clients as well as conduct a reasonable investigation into financial products that might achieve the objectives of the clients.
Further, Mr Young failed to provide the required information about his remuneration and other relevant interests when providing financial product advice; and demonstrate the ability, professional skills and knowledge required to competently provide financial services, ASIC found.
ASIC deputy chairman Peter Kell said, “The business model of simply ‘selling’ life insurance without complying with the legal and regulatory obligations will not be tolerated by ASIC. Advisers who do so will be removed from the industry.”
ASIC’s action was a response to information it received from the licensee, Affinia, regarding potential systemic concerns about advice provided by Mr Young in relation to insurance and superannuation products.
General insurer advisers can provide PA policies (Accident and Sickness) a seroius relation to IP and Capital Benefits (Life Insurance) without ANY compliance issues in any way because its a general insurance product ? Yea Right ? what happend to the so-called level playing field ?
Over regulation and one I believe must ask who is trying to achieve what, we have Industry Super Funds with their own agenda, Banks and Life Insurers, forget Government they are being led by the nose, the consumer and the good old adviser are the only losers
But…The business model of simply ‘selling’ superannuation without any real compliance, legal or regulatory obligations will be tolerated by ASIC if you are a ASF representative…