ASIC has received a Federal Court order to limit the operation of a risk-focused licensee for alleged breaches of the best interests duty obligations before it stands trial.
The Federal Court made the order against Wealth and Risk Management (WRM) and related companies Jeca Holdings Pty Ltd (trading as Yes FS) and Yes FP Pty Ltd, according to an ASIC statement.
WRM is licensed to advise retail clients about life risk insurance and superannuation products.
“The court made the order on the basis that there was an ‘appreciable risk’ that WRM would not prevent breaches of the ‘best interests’ obligation of the Corporations Act by its representatives and that the Yes FS business would breach the obligation not to operate a financial services licence without an AFS licence,” ASIC said.
In addition, Jeca Holdings has been prohibited from carrying on a financial services business.
The order is in place from 3pm on 8 May until the start of the trial on 2 October.
In March, ASIC commenced proceedings against WRM and related companies Yes FP and Jeca Holdings.
ASIC alleges that on numerous occasions since December 2015, WRM advisers provided conflicted advice that is in breach of the best interests obligations contained in the Corporations Act.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 18 Oct 2018Aussies say royal commission won’t change their view of adviceBy James Mitchell
- 18 Oct 2018Hire younger advisers to get younger clients, paper suggestsBy Adrian Flores
- 18 Oct 2018Synchron launches app for adviser developmentBy Reporter
- 17 Oct 2018Private banking has no place for bad advisersBy Eliot Hastie
- 17 Oct 2018CBA admits failure to tackle conflicted adviceBy James Mitchell
- 16 Oct 2018NAB to address advice issues in $314m payoutBy Eliot Hastie
- view all