Melbourne-based financial advice practice Wealth and Risk Management has been stripped of its AFSL after the Federal Court of Australia found it had breached financial services law on multiple occasions.
The corporate regulator has cancelled the AFSL of Wealth and Risk Management after it was “restrained from carrying on a financial services business” for 18 years following a case heard in the Federal Court of Australia.
The cancellation became effective from 14 May 2018, ASIC said in a statement.
Wealth and Risk Management and two related businesses were previously ordered to pay penalties of $7,150,000 for offering “cash payments to financially vulnerable clients” through an agreement that saw the client enter an advice agreement and pay fees out of their superannuation account.
“This process often resulted in a substantial erosion of the client's superannuation balances,” ASIC said at the time.
SUBSCRIBE TO THE IFA DAILY BULLETIN
News
- 09:09Liberal Party has done ‘almost nothing’ for advisersBy James Mitchell
- 10 Dec 2018Better advice complaints resolution needed, says ASICBy Adrian Flores
- 10 Dec 2018Only 12% of advice practices have exit plansBy Adrian Flores
- 10 Dec 2018CIPRs need to account for future mortality rates, study findsBy Adrian Flores
- 10 Dec 2018Freedom halts selling of life insuranceBy Adrian Flores
- 7 Dec 2018New ASIC deputy chair announcedBy Adrian Flores
- view all
