ASIC accepts EU from My Adviser
The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking (EU) from financial services licensee, My Adviser, after finding several instances of poor and unauthorised advice provided by disgraced property developer, Craig Gore.
ASIC's investigation looked into the conduct of My Adviser in relation to its supervision and monitoring of its authorised representatives, particularly Queensland-based Arion Financial Pty Lid (and its predecessor, Sleipner Financial), where Gore worked.
Arion was a corporate authorised representative of My Adviser from August 2012 to September 2014.
ASIC said it was concerned that My Adviser may have failed to comply with certain parts of the Corporations Act. That included, not taking reasonable steps to ensure its representatives complied with financial services law and that its advisers acted in the clients best interest, offered appropriate advice and made the client a priority.
Under the EU, My Adviser must:
- Repay clients who transferred any monies to Arion (or certain related entities) following communications with Craig Gore;
- Engage an independent expert to review a sample of client files and prepare a compliance report; and
- Prepare a remedial action plan to deal with the recommendations of the expert report. ASIC acknowledged that My Adviser had cooperated with its investigation.
My Adviser had also began paying remediation to clients of Arion and had already paid $2 million to date.
ASIC commissioner, Greg Tanzer, said: "All licensees must ensure that its representatives comply with the best interests obligations and where that doesn't occur, ASIC will look to take action".
Craig Gore was banned from providing financial services in 2015.
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
