ASIC accepts EUs from former AMP representatives
The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking (EU) from a former ANZ-aligned and AMP Financial Planning representative, and a former AMP Representative after concerns over their compliance with financial services laws.
Reid Menkens was previously at Millennium3 Financial Services, while Leo Menkens was a former AMP representative. Both trade as Brisbane-based plannning firm, Menkens Financial Group, whose financial services licensees are Austplan Pty Ltd.
ASIC's review of client files found both the father and son had failed to show they had acted in the best interests of their clients, keep appropriate records, and deliver statements of advice on time.
ASIC deputy chairman, Peter Kell, said: "Financial advisers need to ensure their processes and documentation demonstrate that they have acted in the best interests of their clients."
Under the EU, the pair must assign an independent consultant to carry out a program of pre-vet and audit reviews to scrutinise whether their advice was compliant.
The consultant will report to ASIC and Austplan and the father and son will have to remedy any failings found in the review.
ASIC's findings are part of its Wealth Management Project, which started in October last year. It has banned five other advisers from the financial services industry.
AUTHOR
Malavika Santhebennur
Recommended for you
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments for investments.
Inefficient data processes and systems mean advisers are spending over half of their time on product implementation and administration at the expense of clients, according to research.
With the regulator announcing its enforcement focus for 2025 last week, law firm Hall & Wilcox examines the areas which have dropped down the list in priority for the regulator.
