The corporate regulator has accepted an enforceable undertaking from a Queensland-based business that will see the practice’s AFSL cancelled and its sole director removed from the industry for two years.
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.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 19 Oct 2018Life insurer fires 50, kills outbound sales businessBy James Mitchell
- 19 Oct 2018Strategic plan for AFCA releasedBy Eliot Hastie
- 18 Oct 2018Clique Paraplanning launches practice portalBy Reporter
- 18 Oct 2018Challenger announces new Netwealth dealBy James Mitchell
- 18 Oct 2018Aussies say royal commission won’t change their view of adviceBy James Mitchell
- 18 Oct 2018Hire younger advisers to get younger clients, paper suggestsBy Adrian Flores
- view all