Shadow shopper catches out Count adviser
An authorised representative of Count Financial has had limitations placed on his advisory activities by the regulator after a follow-up investigation into the superannuation switching shadow shopper exercise carried out in December 2004.
The Australian Securities and Investments Commission’s (ASIC) investigation into the files of Gary Croese discovered Statements of Advice (SOA) issued to eight of the adviser’s clients that did not disclose all of the information required by law.
As a result, Croese’s licensee must now review any SOA he prepares before it is given to the client.
In addition, Croese must attend a training course nominated by the licensee covering his obligations to the client when offering advice recommending the switching of one investment product to another.
The licensee must also carry out an audit of Croese’s duties every six months to determine if the representative is fulfilling all of his legal obligations when providing advice to clients.
“Financial services representatives must ensure that they comply with all the requirements of the Corporations Act and fully inform their clients of all costs, including the loss of benefits, which are known or ought reasonably be known so that the client can make a fully informed decision about switching financial products such as superannuation funds,” ASIC deputy executive director of enforcement Allen Turton said.
The restrictions placed on Croese are for a two-year period.
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