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
The decision whether to proceed with a $100 million settlement for members of the buyer of last resort class action against AMP has been decided in the Federal Court.
ASIC has released the percentage of candidates who passed its August financial advice exam with the volume dropping to the lowest since November 2022.
Clients are exhibiting multiple concerns on the intergenerational wealth transfer, making it imperative for advisers to address these fears through comprehensive strategies, Adviser Ratings explores.
ASIC has identified three situations where it may be difficult for a licensee to assess an adviser’s qualifications and provided case studies of how they should be tackled, as it undergoes a crackdown on FAR reporting.
