Saxby Bridge adviser banned
Former Saxby Bridge adviser Kevin William Fenwick has been banned for two years from giving investment advice by the Australian Securities and Investments Commission (ASIC).
In the past year, more than 27 advisers have been banned, including 15 who were permanently banned. Three advisers have been banned this year, with ASIC clamping down heavily on financial planners.
Kevin William Fenwick, of Miranda, Sydney, was an adviser for ABS Securities, a wholly owned subsidiary of Saxby Bridge.
Following an investigation, ASIC found Fenwich had failed to disclose to his clients the full extent of commissions he would earn as part of the investment.
He was also found to not have undertaken adequate product research into one of the investment products recommended, which affected the appropriateness of his advice. Fenwich also failed to advise other licensees who he represented about his becoming an adviser for ABS Securities.
ASIC also found that he recommended investments in high-risk, speculative tax-effective investment schemes when his clients had wanted a low risk, conservative investment strategy. This resulted in many of his clients having to borrow money to finance their investments and subsequently had prospective tax benefits denied by the ATO.
AUTHOR
Recommended for you
VBP consultant Sue Viskovic has warned advisers thinking of going self-licensed that they need to act “from a business head, not an adviser head” when it comes to scaling up their practice.
An inquiry is due to probe the collapse of Dixon Advisory and its impact on the Compensation Scheme of Last Resort.
A report has highlighted a growing appetite among high-net-worth individuals for private market investments, creating a significant opportunity for advisers.
The two firms have announced a new online development program to support career changers, advice support staff and university graduates in joining the financial advice profession.
