Former authorised representative for Australian Unity, Christopher Chan, has been banned for five years by the Australian Securities and Investments Commission (ASIC) for misleading clients about MySuper opt-outs.
ASIC surveillance had found that Chan contravened section 1041H of the Corporations Act by sending misleading and deceptive emails to clients in 2016.
The review of Chan’s emails found that he advised clients to opt out of MySuper, claiming that the MySuper product had higher fees than the fees on their existing superannuation balances, but this information was not correct for every client.
Because of these communications, some members did not fully transition to MySuper and continued paying higher fees as a result.
ASIC found that Chan prioritised his company receiving commissions over the interests of his clients.
During the course of ASIC’s enquiries in 2017 and 2028, Chan failed to disclose the emails to his licensee or to ASIC.
The corporate regulator had also recently banned an Aon Hewett adviser for similar issues with transitioning members into MySuper accounts.
ASIC considered that Chan was not adequately trained or competent to provide financial services and that he was likely to contravene financial services law in the future.
Chan had the right to appeal to the Administrative Appeals Tribunal and his banning would be recorded on the Financial Advisers Register (FAR) and the Banned and Disqualified Persons Register.