Qld adviser banned for seven years
The Australian Securities and Investments Commission (ASIC) has banned Queensland adviser, Ian Haisman, from providing financial services for seven years after he failed to act in the best interest of his clients, the regulator said.
ASIC reviewed advice provided by Haisman to his clients from early 2016 to early 2018 when he was an authorised representative of Bristol Street Financial Services.
The investigation found that the advice provided was not tailored to his clients’ individual circumstances, needs and financial goals and when recommending an investment strategy which involved product switching, he did not adequately investigate his clients’ existing superannuation and insurance arrangements, or provide product cost and risk comparisons.
Instead, Haisman used templated strategies and made recommendations that were applied regardless of his clients’ personal circumstances, ASIC said.
Additionally, in some instances, he recommending very high levels of insurance cover compared to the clients’ income or by recommending life insurance policies to clients with no known dependants and no reasonable basis for the policies.
ASIC also found that Haisman failed to provide statements of advice that were clear, concise and effective to all his clients.
“ASIC expects advisers to take into account their clients’ personal circumstances, needs and financial goals to ensure that the advice they provide is appropriate. Failing to do so clearly indicates a lack of regard for the law and for the interests of clients,” ASIC Commissioner Danielle Press said.
“Financial advisers providing personal advice are required by law to act in the best interests of their clients.”
Recommended for you
The Financial Advice Association Australia has released its pre-budget submission, including six key items to help reduce the cost of professional advice and increase its accessibility.
Phil Anderson, general manager for financial advice at the FAAA, believes the CSLR levy could reach $100 million if Dixon Advisory complaints are allowed to continue.
Proposed legislative changes to safe harbour duty could result in advisers having reduced professional indemnity costs, a joint submission by seven major licensees said.
With 66 per cent of newly established advice licensees being sole advisers, what are the risks and legal ramifications to consider when taking the plunge into self-licensing?
