Former Sentinel adviser banned
The Australian Securities and Investments Commission (ASIC) has banned a financial adviser and former authorised representative of Queensland-based independently-owned Sentinel Private Wealth from providing financial services for five years.
The corporate regulator banned Stephen Michael Beckton after finding he did not comply with financial services laws on several occasions while he was a representative of Sentinel from September 2013 to October 2016.
A review of his advice found he had recommended clients change superannuation and insurance products where there was little benefit but high cost to the client.
This resulted in increased adviser fees and commissions for Beckton from insurers.
In doing so, ASIC found Beckton had failed to act in the best interests of his clients, failed to conduct a reasonable investigation of their existing super and insurance products, and given advice that may have left them in a worse position than before adhering to his advice.
He also failed to provide appropriate advice to his clients, failed to properly disclose fees, and failed to prioritise clients' interests ahead of his own when he knew there would be a conflict of interest.
ASIC deputy chair, Peter Kell, said: "Financial advisers must put their clients' interests ahead of their own. Super switching that provides little benefit to the client but is very profitable to advisers is clearly unacceptable".
Beckton's banning will be recorded on ASIC's register of financial advisers. He has a right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
AUTHOR
Malavika Santhebennur
Recommended for you
David Sipina has been sentenced to three years under an intensive correction order for his role in the unlicensed Courtenay House financial services.
As AFSLs endeavour to meet their breach reporting obligations, a legal expert has emphasised why robust documentation will prove fruitful, particularly in the face of potential regulatory investigations.
Betashares has named the top Australian suburbs with the highest spare cash flow, shining a light on where financial advisers could eye out potential clients.
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
