Former Sentinel adviser banned
The Australian Securities and Investments Commission (ASIC) has banned a financial adviser and former authorised representative of Queensland-based independently-owned Sentinel Private Wealth from providing financial services for five years.
The corporate regulator banned Stephen Michael Beckton after finding he did not comply with financial services laws on several occasions while he was a representative of Sentinel from September 2013 to October 2016.
A review of his advice found he had recommended clients change superannuation and insurance products where there was little benefit but high cost to the client.
This resulted in increased adviser fees and commissions for Beckton from insurers.
In doing so, ASIC found Beckton had failed to act in the best interests of his clients, failed to conduct a reasonable investigation of their existing super and insurance products, and given advice that may have left them in a worse position than before adhering to his advice.
He also failed to provide appropriate advice to his clients, failed to properly disclose fees, and failed to prioritise clients' interests ahead of his own when he knew there would be a conflict of interest.
ASIC deputy chair, Peter Kell, said: "Financial advisers must put their clients' interests ahead of their own. Super switching that provides little benefit to the client but is very profitable to advisers is clearly unacceptable".
Beckton's banning will be recorded on ASIC's register of financial advisers. He has a right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
AUTHOR
Malavika Santhebennur
Recommended for you
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
Private market secondaries manager Coller Capital has unveiled a new education platform to improve advisers’ and investors’ understanding of secondaries.
