Philip Leake, who the ASIC adviser register lists as a representative of non-bank advice firm WealthSure Financial Services, did not consider his clients circumstances or the kind of coverage they would need when selling life insurance.
“Mr Leake failed to make a reasonable assessment of which life insurance products might be best suited to his clients’ needs,” the regulator said.
“ASIC also found that Mr Leake made false and misleading statements in his statements of advice, claiming to have considered his clients’ circumstances in relation to the waiting periods for income protection policies when he had not.”
ASIC’s findings were part of the regulator’s Life Insurance Lapse Data Project, which in January identified Duane Wright of Centrepoint-owned Alliance Wealth as failing to undertake adequate findings into clients’ circumstances during his time as an adviser with GuardianFP.
Mr Wright accepted an enforceable undertaking from the regulator that required him to undergo additional training and adhere to “strict supervision” for 12 months.
“claiming to have considered his clients’ circumstances in relation to the waiting periods for income protection policies when he had not.” Does this mean that the client had 60 days sick & annual leave and the adviser recommended a 30 day wait? What’s wrong with that? what happens when the client takes holidays, uses some sick leave and then has a 3 – 6 week shortfall if they go on claim? I’m sure ASIC would be back to ban him for not offering a 30 day wait. Meanwhile there’s never been any comment from ASIC about our largest super fund changing the definition of TPD from OK to shit and claiming it as a “win” in their communication to members. Imagine this happening with the Big 4 Banks or AMP…..Not.
Totally agree anonymous. Funny how ASIC focuses so intently on minor misdemeanours like these (in the big picture of affected persons and $) because it is an adviser, whereas you only have to read Kell’s lackadaisical comments regarding whether ASIC would look at quality of advice/switching advice or any other issues with the ISA (like conflicts, union fees, under table incentives, or insurance conditions) to see he/they have no intention. Political/philosophical alignment is my guess.