Breakaway Finance Group offered the EU to ASIC in response to the regulator’s concerns regarding the practice’s conduct.
“In particular, ASIC had concerns that Breakaway did not sufficiently tailor several key policies and procedures to its operations – thus failing to ensure compliance with relevant laws, did not effectively deal with conflicts of interest, and did not properly implement or follow some key policies,” ASIC said in a statement.
ASIC also had concerns that the Breakaway Finance Group’s sole director, Mark Roberts, failed to make reasonable inquiries into his clients’ circumstances or provide adequate product replacement disclosure when recommending clients switch products.
The regulator was also concerned Mr Roberts “recommended insurance cover where clients were unable to afford the premiums”.
Under the EU, Breakaway Finance Group has agreed to cancel its AFSL and write to relevant clients who have received advice in the last three years to inform them of the undertaking and their rights to raise complaints.
Further, Mr Roberts has agreed not to provide financial services for a period of two years, not act as an officer of an AFS licensee or act as an authorised representative of an AFSL for a period of two years, and notify ASIC before re-entering the industry.
i’m in a mess , if you deal with these people check your accounts for the fees that get taken out for no service
Over insured us, sold us a property into our super we could not afford . We are in a deep amount of it. Our super is worth less by a long way from where we started . We have to now hold in as if we cash out we will owe money.
have just found out he has over insured us and we are now left with no super
Here lies the problem and current loop hole. How did ASIC every see fit to issue this one person train wreck an AFSL?
“Breakaway from what? Tradition? The rules?
They have now lived up to their name ” Breakaway !! ” funny another QLD practice …. a white shoe brigade ?
A good outcome in that this guy (being self licensed) is banned from the industry for a couple of years. His financial planning days with google and social media are over. If he was an employed adviser working for the CBA his only punishment would be to join the FPA and his boss would be promoted.