Planner banned for five years
The Australian Securities and Investments Commission (ASIC) has banned a Victorian financial planner from providing financial services for five years for, among other things, misleading his clients and providing clients with ‘defective’ disclosure documents.
ASIC investigations revealed that Joshua David Fuoco of Prahran, an authorised representative of Elite (a financial planning business associated with the Dollarforce Group), recommended various financial products offered by companies in the Dollarforce Group to Elite clients.
ASIC found that Fuoco did not comply with financial services laws by recommending interests in unregistered managed investments schemes when it would have been apparent to him that the schemes required registration. The regulator also found that he failed to have a reasonable basis for advice he provided to retail clients of Elite.
They also found that in statements of advice he provided to clients he failed to disclose information about remuneration (including commissions or other benefits) payable to him, such as bonuses that might reasonably be expected to be capable of influencing the advice he provided.
ASIC stated that he also failed to disclose information about certain interests of his and his associates, and relationships he or his associates had with product issuers. ASIC said these factors could influence the advice he provided, leading to conduct which was likely to mislead his clients.
Fuoco has the right to lodge an application for review of ASIC’s decision with the Administrative Appeals Tribunal.
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.
