The corporate regulator has banned a former financial adviser for failing to act in his clients' best interests.
ASIC announced today that it has banned Stephen Michael Beckton, a financial adviser and former authorised representative of non-aligned licensee Sentinel Private Wealth Pty Ltd, from providing financial services for five years.
An ASIC review of Mr Beckton's advice found that he had recommended clients change superannuation and insurance products in circumstances where there was little benefit, but significant cost, to the client.
This advice benefited Mr Beckton through increased adviser fees and commissions he received from insurers, ASIC said.
Mr Beckton was found to have: failed to act in the best interests of his clients; failed to provide appropriate advice to his clients; failed to accurately disclose the fees associated with his advice; and failed to put the interests of his clients ahead of his own, when he knew that there was a conflict of interest, ASIC said.
ASIC deputy chair Peter Kell said, “Financial advisers must put their clients' interests ahead of their own. Super switching that provides little benefit to the client but is very profitable to advisers is clearly unacceptable.”
Mr Beckton was a representative of Sentinel Private Wealth from September 2013 to October 2016.
Mr Beckton has a right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
The bid was originally put forward in June.
ASIC has issued a permanent ban to the former financial adviser.
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