Former Westpac insurance adviser banned
A former Westpac financial adviser has been banned for four years after an ASIC investigation found he had entered false information for insurance policies.
Michael Mahoney was employed at BT Financial Group in the Westpac Scaled Advice Insurance business from October 2013 to July 2014.
He provided general advice only to retail clients on insurance products, ASIC said in a statement.
An ASIC investigation found that during the period Mr Mahoney was employed at BTFG, he had engaged in conduct that was misleading and deceptive.
For example, he entered false information regarding various clients’ health or health-risk factors in telephone applications for insurance policies issued by Westpac Life Insurance Services (WLIS).
“This resulted in WLIS issuing policies to clients based on false information and assuming greater risks without having an opportunity to undertake an assessment of those risks,” ASIC said.
WLIS has agreed to honour the affected client policies.
“This outcome shows that ASIC expects employees who are providing financial services to maintain high standards and not engage in conduct that is misleading and deceptive,” ASIC deputy chairman Peter Kell said.
Mr Mahoney has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
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