Two life/risk advisers enter into ASIC EU
Two life/risk advisers have entered into enforceable undertakings (EUs) with the Australian Securities and Investments Commission (ASIC) which will them being overseen by independent experts for the next three years.
The regulator detailed the EUs today, stating they had been entered into because of the deficiencies in advice provided about insurance products.
ASIC named the advisers as Victorian-based Christopher John Cannon and Brisbane-based Danny Charles Pianta.
ASIC said Cannon had entered into the EU after the regulator had outlined concerns that he had:
• failed to act in the best interest of clients in relation to personal advice;
• advised clients to switch insurance products when it was not appropriate;
• in some instances, failed to consider all costs, risks, benefits and disadvantages when advising clients to switch from an existing insurance product into a recommended new insurance policy; and
• used generic Statement of Advice templates when making Financial Product Advice recommendations to clients.
It said Cannon was a director of PAC Financial Pty Ltd and an authorised representative of Austplan Pty Ltd and that it had been concerned that Mr Cannon's advice about insurance products from June 2015 to August 2016 did not meet the standards required of a financial adviser and that he had failed to comply with financial services laws.
It said Cannon acknowledged that ASIC's concerns about his advice were reasonably held and it, in turn, acknowledged Cannon’s cooperation through the investigation.
Dealing with Pianta, ASIC said it was concerned that his advice about insurance products from June 2015 to August 2016 did not meet the standards required of a financial adviser and that he had failed to comply with financial services laws.
In particular, ASIC was concerned that Mr Pinata:
• failed to act in the best interest of clients in relation to personal advice;
• advised clients to switch insurance products when it was not appropriate;
• in some instances, failed to consider all costs, risks, benefits and disadvantages when advising clients to switch from an existing insurance product into a recommended new insurance policy; and.
ASIC said Pianta acknowledged that ASIC's concerns about his advice were reasonably held.
ASIC acknowledged Pianta's cooperation with ASIC through its investigation.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
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.
