High profile former adviser, Sam Henderson has been banned from providing financial services for three years following an Australian Securities and Investments Commission (ASIC) surveillance.
The regulator announced today that Henderson, who became notable after appearing before the Royal Commission, had been banned on the basis that he had failed to act in the best interests of his clients, provide appropriate advice and to prioritise his clients’ interests when providing financial advice.
It said this led to clients either losing money or being at risk of losing money.
ASIC said Henderson was an authorised representative, responsible manager, director and chief executive of Australian Financial Services Licensee, Henderson Maxwell Pty Ltd.
In one example, cited by the regulator, it said Henderson failed to adequately investigate and assess his clients’ existing deferred benefit superannuation products. This resulted in a financial loss of several thousand dollars to one client when they rolled over their deferred benefit. Another client, who did not roll over their deferred benefit, would have incurred a $500,000 loss had they implemented Mr Henderson’s advice.
ASIC also found that Henderson did not properly document or investigate his clients’ existing products, failed to provide advice that was relevant to their specific goals and recommended the use of in-house Henderson Maxwell products without providing product comparisons or justifying why the in-house products were better than his clients’ existing products.