ASIC bans ex-AMP planner
The corporate regulator has permanently banned former AMP financial planner, Rommel Panganiban, from providing financial services after it found that he had failed to act in his clients' best interests.
The Australian Securities and Investments Commission (ASIC) found that between 4 February 2011 and 31 July 2014 Panganiban advised 49 clients who held risk insurance through their AMP superannuation fund to cease their existing AMP insurance policies and replace them with new AMP insurance policies.
ASIC said he did this without considering whether this was in the best interests of his clients and without advising his clients that he was able to simple transfer the insurance policies.
"By ceasing and replacing the insurance policies, rather than transferring them, the full rate of commission became payable to AMP Financial Planning Pty Ltd. Mr Panganiban's remuneration was positively influenced by the upfront commissions he generated as a result of his advice," ASIC said.
"As a result of replacing rather than transferring the clients' policies, Mr Panganiban's clients were exposed to unnecessary consequences including gaps in cover and changes in definitions and policy terms and they risked policy exclusions and loadings."
ASIC noted that it was also unnecessarily restarted the non-disclosure period that allows insurers to avoid policies within the first three years of inception inadvertent non-disclosure.
Panganiban was also a representative of Lionsgate Financial Group from 29 September 2014 until 3 August 2016. ASIC will require AMP Financial Planning and Lionsgate Financial Planning Group to notify Panganiban's clients of his banning.
Panganiban has appealed to the Administrative Appeals Tribual (AAT) for a review of ASIC's decision.
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