ASIC bans Brisbane financial adviser
His banning followed ASIC being notified by his licensee, Affinia, about potential systemic concerns.
The Australian Securities and Investments Commission (ASIC) has banned a Brisbane-based life life insurance financial adviser, Christopher Young, for five years for failing to "act in his clients best interests".
According to ASIC, Young, who was an authorised representative of Affinia Financial Advisers between 2013 and 2015, failed to:
- Provide sufficient detail in Statements of Advice to enable his clients to make informed decisions about his advice
- Keep proper records which included creating misleading client file notes
- Determine if the amounts of insurance cover he recommended were appropriate and if premiums were affordable
- Conduct a reasonable investigation into financial products
- Provide the required information about his remuneration and other relevant interests when providing financial product advice
- Demonstrate the ability, professional skills and knowledge required to competently provide financial services
ASIC's investigation was a response to information the regulator had received from the licensee, Affinia, regarding potential systemic concerns about advice provided by Young in relation to insurance and superannuation products.
ASIC deputy chairman, Peter Kell, said: "Consumers should be confident that their financial adviser is acting in their best interests,"
"The business model of simply ‘selling' life insurance without complying with the legal and regulatory obligations will not be tolerated by ASIC. Advisers do so will be removed from the industry."
According to the ASIC, Affinia reviewed all advice provided by Young and implemented a remediation programme for affected clients who had received advice from him.
AUTHOR
Oksana Patron
Recommended for you
A former Northern Territory financial adviser has received a seven-year ban from ASIC, having been convicted of supplying dangerous drugs and receiving or possessing the proceeds of their sale.
Both Bain Capital and CC Capital have made revised bids for Insignia Financial after completing a period of due diligence.
The advice industry has reached triple-digit gains for the calendar year to date, with two licensees seeing gains of five during the week.
Targeting market leadership in digital advice, Bravura’s digital solutions are now available to over 6 million superannuation fund members.
