A former Westpoint adviser has been banned from providing financial services for a period of three years by the Administrative Appeals Tribunal (AAT).
Denise Simmons of Brisbane had applied to the AAT for a review of an earlier decision by the Australian Securities and Investments Commission (ASIC) to ban her. However, the application did not make it to the hearing stage, with both Simmons and ASIC consenting to the AAT’s orders.
ASIC’s investigation found Simmons made recommendations to clients at two former places of employment – Online Super and Diversified Funds Management – to invest in Westpoint products with money from their self-managed superannuation funds.
ASIC said “in light of the level of risk and size of the clients’ investments in Westpoint”, Simmons failed to give proper consideration to her clients’ circumstances when making the recommendations, and did not make adequate enquiries into the products she recommended.
Further, she was found to have made “misleading and deceptive statements to her clients about the level of risk associated with the investments, and the measures intended to protect their investments”.
Simmons also did not adequately and uniformly disclose the commissions she would receive from her clients’ investments.
Simmons’ ban extends to January 12, 2012. She is one of 24 licensed advisers who advised on Westpoint products and have been banned from providing financial services, as well as four unlicensed advisers and one corporate entity.
