ASIC bans ex-Dover adviser for six years

Melbourne-based financial adviser Ashok Sherwal has been banned from providing financial services and performing any function in a financial services business for six years by the Australian Securities and Investments Commission (ASIC).

The conduct that resulted in Sherwal’s banning related to his activities when he was an authorised representative of Wealth and Risk Management between July 2015 and May 2016 and his time with Dover Financial Advisers between March and October 2017.

The corporate regulator said Sherwal advised clients in need of cash to replace their existing insurance and superannuation products, as well as to take out new insurance products, so that he could generate advice fees and insurance commissions.

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Sherwal then used some of the fees and commissions he received to make cash payments to these clients.

The former adviser failed to identify the scope of the advice being sought by his clients and did not obtain complete and accurate client information, or base his judgement on his clients’ relevant circumstances, ASIC said.

These failures led to his clients receiving inappropriate advice that resulted in their superannuation balances being significantly eroded.

According to ASIC, Sherwal also failed to comply with the additional disclosure requirements when providing product switching advice.

In making its decision, ASIC found Sherwal misunderstood what the best interests duty required of him and demonstrated an inability to follow fundamental and proper financial advice processes.

Sherwal prioritised his own interests above those of his clients, and he did not exercise the degree of professionalism and judgement demanded of financial advisers. ASIC also found that Sherwal was not a fit and proper person due to his serious lack of professionalism and judgement.

Sherwal appealed to the Administrative Appeals Tribunal for a review of ASIC’s decision. The outcome was not yet determined.




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Doesnt sound like pure churn and chasing comm to me if he was rebating some or all of it to clients and actually sounds like the clients who needed cash benefitted (assuming products were same quality premium and no health defects etc, which wasn't raised as an issue in this article).

Think this is another example of a CORRUPT ASIC persecuting the little guys, esp Dover who they especially hate!!!

Oh come on.... There is no way you can defend this practice.

This is pure unethical.

He should have given the client Qantas Points instead of cash?

He shouldn't have given his clients "inappropriate advice" regarding churn of their existing insurance policies resulting in their superannuation balances being eroded solely to obtain a commission (whether partially shared or not).

LIF is badly done.... This is however exactly why it came in.

So if people are offered Qantas Points to "churn" their super it is OK?

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