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
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.
