ASIC has banned a former Affinia-aligned financial adviser after it was found he failed to act in his clients' best interests and failed to comply with financial services laws.
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.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 18 Dec 2018Court lays charges against former Sydney adviserBy Adrian Flores
- 18 Dec 2018ASIC permanently bans Victorian adviserBy Adrian Flores
- 18 Dec 2018Melbourne-based dealer group loses AFSLBy James Mitchell
- 18 Dec 2018AFA appoints new chair of women advocacy bodyBy Sarah Simpkins
- 17 Dec 2018AMP challenged by ASIC on fees for service conductBy Eliot Hastie
- 17 Dec 2018FASEA names provider for adviser examBy Adrian Flores
- view all