ASIC has received an order from the Federal Court to limit the operation of a financial advice provider until it stands trial for allegedly breaching the best interest duty obligations.
The Federal Court made the order against Wealth and Risk Management (WRM) and related companies Jeca Holdings Pty Ltd (trading as Yes FS) and Yes FP Pty Ltd, according to an ASIC statement.
WRM is licensed to advise retail clients about life risk insurance and superannuation products.
“The court made the order on the basis that there was an 'appreciable risk' that WRM would not prevent breaches of the 'best interests' obligation of the Corporations Act by its representatives and that the Yes FS business would breach the obligation not to operate a financial services licence without an AFS licence,” ASIC said.
In addition, Jeca Holdings has been prohibited from carrying on a financial services business.
The order is in place from 3pm on 8 May until the start of the trial on 2 October.
In March, ASIC commenced proceedings against WRM and related companies Yes FP and Jeca Holdings.
ASIC alleges that on numerous occasions since December 2015, WRM advisers provided conflicted advice that is in breach of the best interests obligations contained in the Corporations Act.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 18 Aug 2017ASIC permanently bans former AMP adviserBy Staff Reporter
- 18 Aug 2017IRESS announces first half resultsBy Jessica Yun
- 18 Aug 2017Banks the key to closing advice gap, Tria saysBy Larissa Waterson
- 18 Aug 2017Adviser ethics certification launchedBy Staff Reporter
- 18 Aug 2017Banks evade FOFA, industry funds claimBy Larissa Waterson
- 16 Aug 2017UBS appoints head of wholesale distributionBy Staff Reporter
- view all