BTFG withheld information from Dover on miscreant adviser
Westpac’s BT Financial Planning failed to fully inform Dover Financial Planning about the circumstances under which a financial planner resigned from Westpac Financial Planning, including an internal investigation and issues which should have been notified to the Australian Securities and Investments Commission (ASIC).
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was told that Westpac had failed to provide the information about the planner, Andrew Smith, even though a specific request for information had been received from Dover.
The Royal Commission was also told that Smith was ultimately employed by Dover and continued to be employed by the financial planning firm. BT Financial Advice executive, Michael Wright confirmed to Senior Counsel Assisting the Royal Commission, Rowena Orr QC that Dover had requested from Westpac information regarding Smith’s track-record at Westpac and any issues about which it should be concerned.
However, Westpac had then informed Dover that it was not company policy to given written replies or references regarding its employees which resulted in verbal confirmation that Westpac had “concerns” about Smith and that there was “an on-going investigation in place”.
Dover then requested immediate information about the outcome of the on-going investigation and whether it resulted in any notification to ASIC.
That request was, apparently, not fulfilled prompting Orr to ask Wright whether Westpac’s approach was adequate.
He replied: “Not by today’s standard” but added that the response had been prompted by legal advice and that the executive in question had been following that advice.
The Royal Commission was yesterday told that Smith had resigned his position at BT Financial Planning before a company investigation had been completed and any shortcomings had been reported to ASIC.
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