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
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
