According to ASIC, During his time while licensed with Guardian, Mr Moroney annually recommended his clients replace one insurance policy with another.
“This meant Mr Moroney received a high upfront commission payment each year for each replaced insurance policy,” a statement from the regulator said.
“Clients who entered into a new life insurance policy annually were put at risk of exclusionary periods or revised terms,” it said.
ASIC also determined that Mr Moroney failed to make “reasonable enquiries” into the clients’ circumstances before advising them to switch policies and had also failed to conduct research into the insurance policies he recommended.
ASIC deputy chairman Peter Kell said: “Conduct by advisers aimed at maximising commission by replacing insurance policies, without valid reason, is unacceptable.
“It puts clients’ coverage at risk and drives up costs in the sector, which are ultimately borne by consumers. ASIC will remove advisers whose conduct breaches financial services laws and falls short of the standards expected of the industry.”
Mr Moroney was licensed with Guardian between 20 March 2006 and 3 April 2014.
Mr Moroney has the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
Mr Moloney should be banned.
But we only have half the story. For every commission received a commission is paid. For every churn there is a churner, an insurer paying big bucks to encourage the adviser to breach his duty of care and sell out his client.
Each insurer has a huge file fon each applicant, including how long the previous insurances were on foot. They can access the best advice, and are well resourced.
Each insurer knew exactly what it was doing. For eight years…
What is ASIC doing about the insurers who created this churn?
So further evidence that ASIC know who the advisers are that churn. Can we now get back to normality and leave the industry alone and scrap LIF? ASIC, do your job and keep getting the churners, you know who they are.
So how exactly do the proposed doubling of clawback provisions in LIF stop further behaviour like this from occurring every two years instead of yearly?
Well done ASIC! The current rules work!!! Get rid of those that dont meet their Best Interest Duty obligations…out of interest what penalty did the Licencee aka product manufacturer receive? and the management responsible for accepting the business? (let alone encouraging it) over 8 YEARS! Oh wait..hang on the previous article states they will concentrate on direct sales (aka general advice) so that this type of crap can continue…Why are the so called consumer groups, Govt, ASIC so blind to the FSC rhetoric?
If these actions were taken more often this would be the solution to Mr Trowbridge’s problem as opposed to the LIF proposals
that’s the men we want out of the industry……permanently
Good. And that is how you deal with people who do that. You don’t change the whole industry by bringing in sweeping new rules that affect everybody. You police the rules you already have !!