ASIC takes Melbourne financial advice provider to court
The Australian Securities and Investments Commission (ASIC) has taken to court a Melbourne-based Wealth and Risk Management (WRM), as well as related companies Yes FP and Jeca (trading as Yes FS), for alleged contraventions of their FOFA obligations.
ASIC’s investigation found that WRM provided conflicted advice that breached the best interests obligations contained in the Corporations Act by failing to ensure that its financial services were provided “efficiently, honestly and fairly”.
The company also failed to take reasonable steps to ensure their representatives complied with financial services laws, ASIC said.
Yes FS also contravened the act by carrying on a financial services business without holding an Australian Financial Services licence (AFSL) and by engaging in “misleading and deceptive conduct.”
ASIC found that all three companies engaged in unconscionable conduct in connection with the supply or possible supply of financial services.
ASIC said it would seek “injunctive relief, declarations of contraventions and financial penalties”.
WRM is licensed to advise retail clients about life/risk insurance and superannuation products and it authorises advisers, employed by WRM’s corporate authorised representative, Yes FP, which provides personal financial advice to retail clients.
The first hearing before the Federal Court of Australia is scheduled for 31 March.
AUTHOR
Oksana Patron
Recommended for you
Results are out for the latest sitting of the ASIC financial advice exam, with the pass rate falling for the second consecutive sitting.
Adviser losses for the end of June have come in 143 per cent higher than the same period last year, and bring the total June loss to over 350.
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
