Another Commonwealth Financial Planning adviser has been banned by the Australian Securities and Investments Commission (ASIC) for failing to meet his obligations as a financial adviser, making it three former Commonwealth Financial Planning advisers banned in just over a year.
Under the terms of an enforceable undertaking (EU), Christopher Baker of Croydon in NSW will not provide financial services in any capacity for a minimum of five years
The EU follows an investigation into the financial advice provided by several Commonwealth Financial Planning advisers, ASIC stated.
ASIC found that between 1 March 2005 and 27 February 2009, Baker failed to properly complete a number of Commonwealth Financial Planning’s financial needs analysis documents, failed to determine the relevant personal circumstances and failed to make reasonable inquiries in relation to the personal circumstances of clients before implementing financial advice, and had a large proportion of clients that were profiled with "aggressive" risk profiles.
He also provided property asset allocations to clients far above the recommended asset allocation for their risk profile, failed to provide a statement of advice to clients when required, and failed to include a replacement product advice record in a statement of advice, according to ASIC.
Baker has also undertaken to complete appropriate professional education requirements and must adhere to supervision requirements for six months should he decide to re-enter the financial services industry, ASIC stated.
The latest EU follows the two-year banning of former Commonwealth Financial Planning adviser Simon Langton earlier this year and the seven year ban handed down to Don Nguyen in March 2011.
Commonwealth Financial Planning last year entered into an EU with ASIC under which it agreed to conduct a comprehensive review of their risk management framework and develop a plan to address any deficiencies in that framework, and any clients adversely affected would be compensated.
ASIC said its investigation into the conduct of several other former CFP advisers is continuing.
