ASIC bans adviser over high-risk switching
The regulator has banned Queensland-based adviser Keith McDermott from providing financial services for three years.
This would prevent him from managing, supervising or auditing the provision of financial services and prohibit him from providing training on financial services and products.
Based on advice he provided to clients while a director at The FinancialLink Group (TFLG), the Australian Securities and Investments Commmision (ASIC) found some of his clients invested in a high-risk fund, Investport Income Opportunity, which did not necessarily match clients’ risk profiles. Other clients were encouraged to switch a high percentage of their retirement savings into the fund.
He also failed to disclose the charges, consequences and lost benefits which arose from the switching recommendation.
The Investport Income Opportunity was a managed investment scheme operated by Endeavour Securities (Australia) and was an entity related to McDermott’s former licensee, TFLG.
ASIC determined this advice was not appropriate or in clients’ best interest and that he prioritised his own and the licensee’s interest ahead of his clients.
The banning was effective from 3 August, 2021, and recorded ASIC’s Financial Advisers Register and the Banned and Disqualified register.
AUTHOR
Laura Dew
Recommended for you
While the number of advisers switching tends to tick up at the end of the year, Padua Wealth Data reveals which business model sees the most adviser loyalty.
Private credit, auditor misconduct and super trustees have been listed among ASIC’s priorities as the regulator unveils its top focus points for the coming year.
Melbourne-based investment manager Woodbridge Capital has appointed an origination director for south-east Queensland, strengthening its foothold in the region as part of its national expansion strategy.
Barings has appointed a new head of Asia Pacific to succeed Duncan Robertson, who will retire after almost two decades with the firm.
