ASIC takes Melbourne financial advice provider to court

The Australian Securities and Investments Commission (ASIC) has taken to court a Melbourne-based Wealth and Risk Management (WRM), as well as related companies Yes FP and Jeca (trading as Yes FS), for alleged contraventions of their FOFA obligations.

ASIC’s investigation found that WRM provided conflicted advice that breached the best interests obligations contained in the Corporations Act by failing to ensure that its financial services were provided “efficiently, honestly and fairly”.

The company also failed to take reasonable steps to ensure their representatives complied with financial services laws, ASIC said.

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Yes FS also contravened the act by carrying on a financial services business without holding an Australian Financial Services licence (AFSL) and by engaging in “misleading and deceptive conduct.”

ASIC found that all three companies engaged in unconscionable conduct in connection with the supply or possible supply of financial services.

ASIC said it would seek “injunctive relief, declarations of contraventions and financial penalties”.

WRM is licensed to advise retail clients about life/risk insurance and superannuation products and it authorises advisers, employed by WRM’s corporate authorised representative, Yes FP, which provides personal financial advice to retail clients.

The first hearing before the Federal Court of Australia is scheduled for 31 March.

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