TFSA customers to receive $2.5m in compensation

The Australian Securities & Investments Commission (ASIC) has completed a compliance review and remediation program that will result in $2,549,291 in compensation being paid to clients of Total Financial Solutions Australia (TFSA).

The regulator said it has also removed additional licence conditions that were imposed by consent on TFSA on 25 September, 2015, following instances of inappropriate advice by one of their authorised representatives.

That adviser, Brian Dobinson, was permanently removed from the financial services industry, after ASIC found he failed to act in clients' best interests by, among other things, using a ‘one size fits all’ model to advise clients regardless of individual circumstances.

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The compliance expert who oversaw the review also looked at aspects of TFSA's compliance arrangements, specifically in relation to monitoring and supervision of representatives, ASIC said.

The compliance expert made a number of recommendations which have been implemented by TFSA, it said.

ASIC acknowledged TFSA's cooperative approach to completing the remediation program and improving its compliance standards.

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