National Advice Solutions convicted for unlawful super advice
Financial services company National Advice Solutions has been hit with a penalty for violating anti-hawking regulations.
The Southport Magistrates Court in Queensland imposed a penalty of $70,000 after the firm pled guilty to one charge of breaching anti-hawking laws under s992A(3) of the Corporations Act.
National Advice Solutions was charged for making unsolicited calls to consumers between August 2019 and June 2020, encouraging them to roll over superannuation into different superannuation products.
Consumers were charged both an initial fee for the rollover and an ongoing fee for the service.
The court ruling followed an investigation from the Commonwealth Director of Public Prosecutions after the matter escalated by the Australian Securities and Investments Commission (ASIC).
“Australians work hard to build up their super. Unsolicited calls can convince consumers to make decisions on their super that they didn’t plan to make or don’t suit their needs,” said ASIC deputy chair Sarah Court.
“Reforms to the anti-hawking regime were in response to clear consumer harm when it came to the unsolicited calls involving financial products.
"ASIC strongly advocated for these reforms and will continue to pursue action in the court where we see a disregard for these laws.”
In December 2022, ASIC cancelled the Australian Financial Services licence of National Advice Solutions and banned two Gold Coast-based responsible managers — Gail Glasby and Paul Carcallas — from providing financial services for a period of 10 years.
Reforms were since been implemented in response to recommendations from the Sector Reform (Hayne Royal Commission Response) Act 2020.
The reforms aimed to protect consumers from harm from unwanted products promoted via cold-calls or other unsolicited contact.
AUTHOR
Charbel Kadib
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
