ASIC accepts EU from former Synchron adviser
The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking (EU) from a former Victorian authorised representative of non-aligned planning group, Synchron, to withdraw from financial services for three years.
ASIC accepted an enforceable undertaking (EU) from Michael Melamed after concerns that his advice on life insurance between March 2013 and January 2015 during his tenure at Synchron did not meet the standards required of a financial adviser and that he failed to comply with financial services laws.
He also failed to demonstrate he had the professional skills and knowledge needed to proficiently provide financial services.
ASIC said Melamed failed to keep accurate records of the financial product advice provided, failed to make appropriate inquiries into his clients' relevant objectives, financial situation and needs, and failed to carry out a needs analysis to see if the amount of insurance cover was in his clients' best interests.
ASIC also found he had recommended insurance cover where clients could not afford the insurance premiums.
ASIC reviewed advice provided by Melamed as part of its review of life insurance advice.
"Mr Melamed acknowledges that ASIC's concerns about his advice are reasonably held," ASIC said.
If Melamed wishes to re-enter the financial services industry after the three-year period, he must inform ASIC and undertake the required additional training to provide financial product advice.
His withdrawal will be recorded in the Financial Advisers Registry.
AUTHOR
Malavika Santhebennur
Recommended for you
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.
