Former Sentinel adviser banned
The Australian Securities and Investments Commission (ASIC) has banned a financial adviser and former authorised representative of Queensland-based independently-owned Sentinel Private Wealth from providing financial services for five years.
The corporate regulator banned Stephen Michael Beckton after finding he did not comply with financial services laws on several occasions while he was a representative of Sentinel from September 2013 to October 2016.
A review of his advice found he had recommended clients change superannuation and insurance products where there was little benefit but high cost to the client.
This resulted in increased adviser fees and commissions for Beckton from insurers.
In doing so, ASIC found Beckton had failed to act in the best interests of his clients, failed to conduct a reasonable investigation of their existing super and insurance products, and given advice that may have left them in a worse position than before adhering to his advice.
He also failed to provide appropriate advice to his clients, failed to properly disclose fees, and failed to prioritise clients' interests ahead of his own when he knew there would be a conflict of interest.
ASIC deputy chair, Peter Kell, said: "Financial advisers must put their clients' interests ahead of their own. Super switching that provides little benefit to the client but is very profitable to advisers is clearly unacceptable".
Beckton's banning will be recorded on ASIC's register of financial advisers. He has a right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
Recommended for you
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.
Sharing his reasoning in joining the FSC board, WT Financial managing director, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
