Suncorp Life has announced it will exit the financial planning business and no longer manage self-employed networks, Guardian Advice and Suncorp Financial Planning, from mid-2016.
The move will affect the jobs of around 170 self-employed, aligned advisers, a Suncorp spokesperson said.
The move comes after the Australian Securities and Investments Commission (ASIC) imposed additional licence conditions on Guardian Advice in December 2014 after finding advice given to retail clients lacked a reasonable foundation, and was not necessarily given in the best interests of the clients.
ASIC had also said Guardian Advice did not have “adequate arrangements in place to ensure it was complying with its general obligations as an Australian financial services licensee”.
Acting chief executive Suncorp Life, Jeremy Robson said the decision supported the business’ direction and came after much deliberation.
“We have made the decision to simplify our distribution model in line with our strategic priorities and in the interests of advisers and consumers,” he said.
He added the firm’s immediate goal was to transition the advisers and help them “identify their options”.
“Over the next six months we will be working closely with both the Guardian Advice and Suncorp Financial Planning advisers to explore options such as transitioning them to other licensees in the market if they choose.”
ASIC issued a statement following the announcement today, stating that Suncorp Life and Superannuation Limited had been completing a client remediation program in relation to the additional licence requirements imposed on them, and to fund the compensation of Guardian Advice clients if required.
Suncorp has also agreed to implement recommendations made by an expert appointed to Guardian Advice in the continuing financial advice business, ASIC said.
