ClearView representative agrees to EU
A Queensland-based adviser will undergo additional training, 12 months supervision and have each piece of advice audited by his authorising licensee, as part of an enforceable undertaking (EU) with the Australian Securities and Investments Commission (ASIC).
An ASIC investigation found that, Churchill Consulting Services Pty Ltd director — who was an authorised representative of ClearView Financial Advice Pty Ltd — contravened his financial services obligations.
In the EU the regulator raised concerns that Churchill failed "to undertake adequate enquiries into the relevant personal circumstances of some clients to whom they made recommendation" in relation to their insurance needs, and "in some instances" failed "to provide adequate replacement product advice to the client in the Statement of Advice, preventing the client from making an informed decision to switch insurance cover".
ASIC also found that in some cases Churchill did not demonstrate the benefits of a stepped or level premium; that he failed to consider the competing priorities of adequate insurance versus affordability; and limited the advice to exclude issues which could not reasonably be excluded from the scope of advice.
AUTHOR
Nicholas O'Donoghue
Recommended for you
Insignia Financial has issued a statement to the ASX regarding a potential bid from a third global private equity business to acquire the firm.
More than 30 advisers fell off the FAR during the Christmas and New Year period, according to Wealth Data, with half of these coming from licensee giant Entireti.
With next-generation heirs unlikely to retain their family’s financial advisers after receiving an inheritance, Capgemini has explored how firms can work with younger generations to maintain a relationship.
The use of technology and data analytics will be a way for advice firms to grow in 2025, according to Adviser Ratings, with those who are using it successfully reporting 10 per cent higher profit margins.
