BT planner went unpunished despite 'poor' advice
BT Financial Planning has acknowledged that it took no action against a senior financial planner notwithstanding his activities being the subject of client complaints and referenced in a letter about compliance concerns to the Australian Securities and Investments Commission (ASIC).
Giving testimony before the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services industry, BT Financial Advice general manager, Michael Wright confirmed that despite the letter to ASIC and client concerns no action had been taken by the bank against the adviser, Krish Mahadevan.
The Royal Commission had earlier heard testimony from a nurse that advice from Mahadevan had cost she and her truck driver husband a substantial slice of their superannuation balance plus their family home because they had not been told their proposal to purchase a bed and breakfast operating via a Self Managed Superannuation Fund (SMSF) was not viable.
Questioning Wright, counsel assisting the Royal Commission, Rowena Orr QC also pointed out that Mahadevan’s advice had been queried by a paraplanner on a range of issues including the cost of on-going advice, the cost of establishing the SMSF and the related insurance.
Wright said in his testimony that he agreed that the advice which had been provided to the nurse and her husband had been “poor”.
Wright also agreed that Mahadevan had not acted in the client’s best interest, but disagreed that the adviser had acted in his own interest.
The Royal Commission also heard that the sale of the insurance in the advice had contributed to a monthly bonus received by Mahadevan.
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