Seven-year ban for former Synchron adviser
The Australian Securities and Investments Commission's (ASIC's) ongoing review of life insurance advice has claimed another scalp with the banning of a Queensland-based risk adviser.
The regulator announced it had banned life insurance financial adviser and Synchron Business Services authorised representative, Mateen Mohammed, of Calamvale, Queensland, from providing financial services for seven years.
It said that the banning had followed an ASIC surveillance which found that Mohammed:
• had not maintained the high standards expected of a provider of financial services;
• did not understand the duties and obligations imposed on a provider of financial services; and
• could not be relied upon to discharge the duties and obligations imposed on a provider of financial services.
The ASIC announcement said that, in particular, it was found that Mohammed did not act in the best interests of his clients in that he failed to:
• make reasonable enquires into clients' relevant objectives, financial situation and needs;
• conduct a reasonable investigation into financial products that might achieve the objectives of the clients, including their existing superannuation and insurance products; and
• prioritise the interests of his clients over his own.
ASIC also found that he had submitted an insurance application without his client's knowledge and as a result had misled or deceived the insurer as to his authority to do so.
Commenting on the banning, ASIC deputy chairman, Peter Kell said any advice to switch existing life insurance and superannuation products had to be in the client's best interest.
"Where there is nothing in the client's relevant circumstances to indicate that the switch would be beneficial, ASIC will conclude that the client is not in a better position," he said.
ASIC noted that Mohammed has the right to appeal to the Administrative Appeals Tribunal for a review of its banning decision.
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