ASIC bans Brisbane financial adviser
His banning followed ASIC being notified by his licensee, Affinia, about potential systemic concerns.
The Australian Securities and Investments Commission (ASIC) has banned a Brisbane-based life life insurance financial adviser, Christopher Young, for five years for failing to "act in his clients best interests".
According to ASIC, Young, who was an authorised representative of Affinia Financial Advisers between 2013 and 2015, failed to:
- Provide sufficient detail in Statements of Advice to enable his clients to make informed decisions about his advice
- Keep proper records which included creating misleading client file notes
- Determine if the amounts of insurance cover he recommended were appropriate and if premiums were affordable
- Conduct a reasonable investigation into financial products
- Provide the required information about his remuneration and other relevant interests when providing financial product advice
- Demonstrate the ability, professional skills and knowledge required to competently provide financial services
ASIC's investigation was a response to information the regulator had received from the licensee, Affinia, regarding potential systemic concerns about advice provided by Young in relation to insurance and superannuation products.
ASIC deputy chairman, Peter Kell, said: "Consumers should be confident that their financial adviser is acting in their best interests,"
"The business model of simply ‘selling' life insurance without complying with the legal and regulatory obligations will not be tolerated by ASIC. Advisers do so will be removed from the industry."
According to the ASIC, Affinia reviewed all advice provided by Young and implemented a remediation programme for affected clients who had received advice from him.
AUTHOR
Oksana Patron
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
