ASIC bans adviser over high-risk switching
The regulator has banned Queensland-based adviser Keith McDermott from providing financial services for three years.
This would prevent him from managing, supervising or auditing the provision of financial services and prohibit him from providing training on financial services and products.
Based on advice he provided to clients while a director at The FinancialLink Group (TFLG), the Australian Securities and Investments Commmision (ASIC) found some of his clients invested in a high-risk fund, Investport Income Opportunity, which did not necessarily match clients’ risk profiles. Other clients were encouraged to switch a high percentage of their retirement savings into the fund.
He also failed to disclose the charges, consequences and lost benefits which arose from the switching recommendation.
The Investport Income Opportunity was a managed investment scheme operated by Endeavour Securities (Australia) and was an entity related to McDermott’s former licensee, TFLG.
ASIC determined this advice was not appropriate or in clients’ best interest and that he prioritised his own and the licensee’s interest ahead of his clients.
The banning was effective from 3 August, 2021, and recorded ASIC’s Financial Advisers Register and the Banned and Disqualified register.
AUTHOR
Laura Dew
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