ASIC bans former NAB adviser
National Australia Bank (NAB) has issued a statement saying the bank's former adviser, Grant McCormack, who was banned by the corporate regulator, left NAB in September 2013 after concerns about his misconduct were flagged.
The bank's executive general manager, NAB Wealth Advice, Greg Miller, welcomed ASIC's banning of the former NAB Financial Planning adviser.
"Advisers must follow all processes and procedures at all times to make sure they are doing the right thing by our customers, but this wasn't the case for Mr McCormack," Miller said.
"We want to strengthen our business and ensure we are always open, transparent and take issues impacting customers seriously."
The Australian Securities and Investments Commission (ASIC) banned the former Victorian National Australia Bank (NAB) adviser from providing financial services after an investigation found he had breached financial services laws.
The ban is part of ASIC's wealth management project, which was set up in October 2014 in a bid to lift standards by major financial advice providers.
ASIC banned McCormack from South Melbourne after finding that he engaged in misleading and deceptive conduct between June and July 2013.
The investigation found he phoned an industry superannuation fund and falsely stated that he was a member of the fund in order to obtain information on that member without authorisation.
He also saw his client phone and falsely state that he was the same member of the super fund to attain further personal super account information about a third party.
He also helped his client complete and submit false withdrawal forms, using the information previously attained relating to that member's super account so that all funds were transferred to his client.
ASIC deputy chair, Peter Kell, said ASIC will take steps to remove advisers who breach financial services laws from the financial services industry.
"When acting on behalf of their clients, financial advisers must not engage in behaviour that is misleading or deceptive," he said.
McCormack has applied to the Administrative Appeals Tribunal for a review of the corporate regulator's decision.
AUTHOR
Malavika Santhebennur
Recommended for you
E&P Financial Group, former parent of Dixon Advisory, has formally requested to delist from the ASX, with the company noting the negative impact of regulatory proceedings on its share price.
Commentators have discussed how value for money is becoming more critical than ever as licensee fees rise and failure by an AFSL to provide this is driving them to self-licensing.
The final terms of reference for the Dixon Advisory inquiry have been released by the Senate economics references committee, and advisers have just over five weeks to make their submissions.
Financial advisers are in the running to win one of the coveted Women in Finance Awards 2024.
