ASIC slaps QLD adviser with five-year ban


As part of the Australian Securities and Investments Commission’s (ASIC’s) move to clean up the financial services industry, it has banned Queensland-based Breakaway Finance Group and Millenium 3 adviser, Gregory Forster, from providing financial services for five years after an investigation showed he provided inappropriate advice to clients and failed to act in their best interests.
The ASIC investigation found Forster had failed to take into account his clients’ actual circumstances when providing advice, instead obtaining limited information and making a series of assumptions about their personal circumstances.
The investigation also found Forster recommended new superannuation and insurance products to his clients without considering their existing products and services, and in many cases, those insurance products’ premiums were not affordable. Forster’s clients’ premiums were paid from their superannuation, which could potentially lead to the erosion of their balances.
The corporate regulator found Forster had significantly understated the costs associated with the implementation of his advice, particularly the costs associated with running a SMSF.
As well, it was found Forster had not complied with the requirements for a Statement of Advice, and instead of disclosing the dollar value of fees, he used percentages.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.