ASIC has banned an Adelaide-based adviser from providing financial services for a period of five years for consistently failing to address the stated needs and objectives of his clients.
As a result, Peter Anthony Chigwidden did not provide advice that was in the best interests of his clients, ASIC said in a statement.
According to the ASIC Adviser Register, Mr Chigwidden was with Lifestyle Asset Management from December 2017 to March 2019. Before then, he was with Dover Financial from May 2016 to October 2017 as well as with Ballast Financial Management from April 2010 to September 2015.
Following a review of Mr Chigwidden’s advice, ASIC found that Mr Chigwidden consistently failed to address the stated needs and objectives of his clients and, as a result, did not provide advice that was in the best interests of his clients.
Where his advice included product switching recommendations, he made those recommendations without adequate consideration of the cost impact or other consequences of that advice and failed to properly disclose the costs and consequences of the advice, leaving clients poorly informed.
Crucially, ASIC said the switching advice also failed to demonstrate that the recommended product(s) better met the clients’ needs or objectives than their existing product(s).
ASIC considered that Mr Chigwidden also failed in some cases to provide statements of advice and records of advice to clients when he was required to do so and, where he did provide those advice documents, he failed to include specific information such as the fees and costs the clients may incur if they followed his advice.
Further, ASIC said the banning of Mr Chigwidden is part of ASIC’s ongoing efforts to improve standards across the financial services industry.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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