Wealthsure takes on Seagrims advisers

Dealer group Wealthsure will take on a number of financial planners from suspended financial planning firm Seagrims as authorised representatives, and provide advice to the 4,000 Seagrim clients affected by the collapse of Astarra Strategic fund, according to Wealthsure managing director Darren Pawski (pictured).

Wealthsure is working closely with the Australian Securities and Investments Commission (ASIC) about taking on advisers formerly employed by Seagrims, Pawski told Money Management. Only those advisers who were found to be ‘clean’ by ASIC would be taken on by Wealthsure, Pawski said.

In a letter sent by Seagrim director Peter Seagrim to the group’s clients and obtained by Money Management, Peter Seagrim revealed that ASIC has decided to “temporarily” suspend the group’s AFSL licence due to regulator’s concerns over negligent Statements of Advice (SOAs) and disclosure issues.

ASIC found that Seagrim had failed to adequately ascertain or record from 20 clients whether their personal financial circumstances had changed before making investment recommendations. This resulted in at least 20 negligent SOAs provided to those clients.

ASIC also found that Seagrims did not properly disclose the sharing of advertising expenses between the owners of the Seagrims Retirement Funds and Diversified Funds, otherwise known as Astarra. Seagrims also failed to disclose to clients the wages of Astarra’s administration staff who helped to process new client applications. Concerns with Seagrim’s compliance processes were also raised by ASIC.

Peter Seagrims informed clients that while the company was in suspension, its advisers would become corporate authorised representatives of Wealthsure.

Both Peter and Anne-Marie Seagrims will not work with Wealthsure, Pawski said.

Update: ASIC has now formally announced that Peter Seagrim and Anne-Marie Seagrim have both been banned from providing financial services for three years.