Ex-Millennium3 adviser fails to act in clients’ best interest
The corporate watchdog has banned Queensland financial adviser, Travis Byron McLean, from providing financial services for five years after he failed to act in his clients’ best interest when providing life insurance advice.
The Australian Securities and Investments Commission (ASIC) found McLean, who was a former authorised representative of Millennium3 Financial Services from 3 July 2006 to 31 December 2015, and Total Financial Solutions Australia from 20 February 2015 to 31 July 2017, failed to comply with financial services laws.
ASIC found that he failed to:
- Provide sufficient detail in statements of advice to enable his clients to make informed decisions about his advice;
- Keep proper records;
- Make reasonable enquires into clients' relevant objectives, financial situation and needs;
- Determine if the amounts of insurance cover he recommended were appropriate and if premiums were affordable; and
- Conduct a reasonable investigation into financial products that might achieve the objectives of the clients.
ASIC deputy chair, 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 who fail to give compliant advice will be removed from the industry,” he said.
McLean has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.