Macquarie staffer banned for tardy SOAs
The former Macquarie Bank staffer banned from practicing financial services last week for being late with disclosure documents had already been warned of his transgressions, the bank has revealed.
Julian Hays, who left the bank three months ago, was banned for three years from providing a financial service for failing to provide clients of the bank with timely Statements of Advice (SOAs).
A spokesperson for Macquarie said Hayes “did not adhere to processes that were in place in order to ensure its clients risks were carefully managed”, despite being counselled about this.
“Despite attempts to assist the former employee to comply he continued to refuse to follow processes,” the spokesperson said.
Macquarie said it had taken steps to ensure that no clients were disadvantaged by Hayes’ actions and also put “stringent processes” in place in order to ensure repeat occurrences do not take place.
Hayes was banned by the Australian Securities and Investments Commission (ASIC) following an investigation into his financial dealings as a representative of both Macquarie Equities and Macquarie Investment Management between September and November 2004.
ASIC alleged Hayes’ actions breached the Corporations Act, which states a SOA must be given as “soon as practicable and in any event not later than the fifth day after a financial service is provided”, according to its deputy enforcement director, Allen Turton.
An ASIC investigation identified instances where Hayes had “failed to provide SOAs for periods between three weeks and two months after providing financial services such as superannuation rollovers”, Turton said.
“A review of Hayes’ client files indicated he had failed to make adequate enquiries concerning clients’ personal circumstances and demonstrate regard for the information obtained through such enquiries.”
He said ASIC was also concerned that Hayes, who ceased employment with Macquarie in December 2005, did not have the necessary “product knowledge and capacity to provide reliable advice”.
Hayes has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
