Former Commonwealth Financial Planning adviser banned for seven years
A former Commonwealth Financial Planning representative has been banned from providing financial services for seven years following an Australian Securities and Investments Commission (ASIC) investigation.
Don Nguyen of Dulwich Hill in New South Wales was an authorised representative of Commonwealth Financial Planning between 2003 and 2009, and was found to have given inappropriate advice.
ASIC found Nguyen failed to have a reasonable basis for advice and failed to provide Statements of Advice, Product Disclosure Statements and sufficient additional information when recommending to a client that they switch products.
Nguyen also made statements that were false or misleading in a material particular, and induced clients to deal in financial products by making statements or forecasts that were misleading, false or deceptive, ASIC found.
ASIC found Nguyen’s conduct was not isolated and persisted for a period of at least two years between 2006 and 2008, with multiple clients.
Nguyen also did not demonstrate a willingness to maintain compliance standards and lacked the ability and knowledge to perform the duties and obligations of a financial services provider, ASIC stated.
In August last year Commonwealth Financial Planning agreed to compensate clients who had received inappropriate advice from Nguyen based on how their investments would have been currently valued had they received the correct advice, ASIC stated.
The compensation program is being independently reviewed with ASIC to monitor the outcome, the regulator stated. Commonwealth Financial Planning will also support clients seeking independent legal, accounting or financial advice who have received an offer of compensation as a result of receiving inappropriate advice, according to ASIC.
Nguyen has the right to apply to the Administrative Appeals Tribunal.
AUTHOR
Chris Kennedy
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