The Australian Securities and Investments Commission (ASIC) has banned Peter Jianchao Xu for five years from providing financial services following surveillance.
The Perth financial adviser was an authorised representative of Westpac Banking Corporation, Commonwealth Financial Planning, and most recently Neo Financial Solutions.
ASIC had reviewed a sample of Xu’s advice files and found he had failed to comply with financial services laws including best interests duty and the requirement to provide appropriate advice.
ASIC found Xu repeatedly recommended clients take out a new insurance policy instead of checking whether it would be beneficial if they remained with or modified their existing policies.
They had also found an ongoing failure by Xu to consider his clients’ personal circumstances when providing personal insurance advice, which led the risk of his clients’ being under-insured.
Xu had the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
