The corporate regulator has banned a former Synchron authorised representative for seven years after it was found he did not act in the best interests of his clients.
ASIC said in a statement that it has banned Mateen Mohammed, of Calamvale, Queensland, from providing financial services. He was an authorised representative of Synchron between 1 July 2010 and 22 April 2015.
Surveillance found that Mr Mohammed did not act in the best interests of his clients by failing to make reasonable inquiries into clients’ relevant objectives, financial situation and needs, as well as conduct a reasonable investigation into financial products that might achieve the objectives of the clients, including their existing superannuation and insurance products.
Mr Mohammed also submitted an insurance application without his client’s knowledge and, as a result, misled or deceived the insurer as to his authority to do so, the statement said.
ASIC deputy chairman Peter Kell said: “Any advice to switch existing life insurance and superannuation products must be in the client’s best interest.
“Where there is nothing in the client’s relevant circumstances to indicate that the switch would be beneficial, ASIC will conclude that the client is not in a better position.”
Mr Mohammed has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision. ASIC said its action against Mr Mohammed is part of ongoing enforcement and regulatory action following its review of life insurance advice.
Several firms have been impacted by the corporate regulator’s action.
Super funds must now have a retirement income strategy in place.
Vanguard has called for a complete overhaul of the advice industry.
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