The corporate watchdog has banned Queensland financial adviser, Travis Byron McLean, from providing financial services for five years after he failed to act in his clients’ best interest when providing life insurance advice.
The Australian Securities and Investments Commission (ASIC) found McLean, who was a former authorised representative of Millennium3 Financial Services from 3 July 2006 to 31 December 2015, and Total Financial Solutions Australia from 20 February 2015 to 31 July 2017, failed to comply with financial services laws.
ASIC found that he failed to:
- Provide sufficient detail in statements of advice to enable his clients to make informed decisions about his advice;
- Keep proper records;
- Make reasonable enquires into clients' relevant objectives, financial situation and needs;
- Determine if the amounts of insurance cover he recommended were appropriate and if premiums were affordable; and
- Conduct a reasonable investigation into financial products that might achieve the objectives of the clients.
ASIC deputy chair, 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 who fail to give compliant advice will be removed from the industry,” he said.
McLean has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.