Gold Coast adviser banned for pushing own products
The Australian Securities and Investments Commission (ASIC) has banned a former Gold Coast adviser and property developer from the financial services industry for 10 years after investigations into the advice she gave relating to investments in her own group of companies.
ASIC accepted an enforceable undertaking from Susanne Rae Percival, who was banned from being a financial adviser, licensee or authorised representative of a licensee following an ASIC investigation into financial advice she provided to retail investors as an authorised representative of AAA Shares.
The advice related to investments in a number of investment companies known as the IC Group, which operated principally under her management and control.
ASIC’s investigation revealed that Percival failed to adequately explain the basis of her advice, take into account many investors’ personal circumstances, advise many clients of the unsecured nature and risks of the proposed investments, or of her own interest in the financial products she was recommending.
Percival also failed to provide clients transferring superannuation benefits into self-managed superannuation funds with the required comparative information regarding the switch costs and obligations associated with conducting a self-managed superannuation fund.
ASIC also found that in a number of instances, Percival did not issue Statements of Advice and, where they were issued, they were lacking in the prescribed information.
ASIC accepted the enforceable undertaking as an alternative to pursuing an administrative banning of Percival under section 920A of the Corporations Act.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
