Philip Leake, whom the Australian Securities and Investments Commission (ASIC) adviser register lists as a representative of non-bank advice firm Wealthsure Financial Services, did not consider his clients circumstances or the kind of coverage they would need when selling life insurance.
“Mr Leake failed to make a reasonable assessment of which life insurance products might be best suited to his clients’ needs,” the regulator said.
“ASIC also found that Mr Leake made false and misleading statements in his statements of advice, claiming to have considered his clients’ circumstances in relation to the waiting periods for income protection policies when he had not.”
ASIC’s findings were part of the regulator’s Life Insurance Lapse Data Project, which in January identified Duane Wright of Centrepoint-owned Alliance Wealth as failing to undertake adequate findings into clients’ circumstances during his time as an adviser with GuardianFP.
Mr Wright accepted an enforceable undertaking from the regulator that required him to undergo additional training and adhere to “strict supervision” for 12 months.
The bigger problem is not knowing the nature of the adviser’s breach. ASIC need to be highly specific in pointing out the nature of the breach so that advisers can avoid repeating it.
Another ridiculous witch hunt no doubt. I’m sure he would of given sufficient advice when factoring in the cost and what the client wanted or was willing to pay. At worst it may not of been enough cover but what part did the clients budget play in this? What responsibility does the clients tightness play here. His undoing might of been not recommending the “correct” Levels in the SOA maybe? This just encourages advisers to go high on levels and mention everything possible in the soa. It’s advice designed for defence in courtroom. Ridiculous industry compliance at play here.