AR banned, advice firm’s AFSL cancelled
Financial adviser Frederick Ackerman has been banned by the corporate regulator for four years and the firm he was an authorised representative (AR) of, Pure Strategy, has had its Australian financial services licence (AFSL) cancelled.
The Australian Securities and Investments Commission (ASIC) banned Ackerman from providing financial services and performing any function involved in the carrying on of a financial services business for four years.
Ackerman was found during his time as an AR at Pure Strategy from 22 May, 2019, to 16 September, 2021, to have failed in acting in the best interest of his clients or provide them appropriate advice and at times he did not:
- Identify his clients’ relevant objectives, financial situation or needs;
- Identify the subject matter of the advice sought;
- Conduct a reasonable investigation and assessment of financial products;
- Base all judgements on his client’s circumstances; or
- Place his clients in a better position were they to follow his advice.
ASIC also found that Ackerman was neither competent nor a fit and proper person to provide a financial service.
ASIC also cancelled the AFSL of Pure Strategy effective 16 September, 2021, after it failed to comply with its general obligations.
The regulator said the firm failed to have adequate resources to carry out a financial services business, failed to maintain competence to provide the financial services under its licence, and failed to ensure its representatives complied with financial services laws. Pure Strategy also failed to comply with its licence condition to have a ‘key person’.
ASIC noted its licence would remained in effect for 12 months for the purposes of maintaining its Australian Financial Complaints Authority membership and its obligation to hold professional indemnity insurance cover.
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