Sentry subject to client reviews following ASIC action
Perth-based advisory group Sentry Financial Services will write to clients of its corporate authorised representative offering reviews of self managed super fund (SMSF) advice and engage an independent expert to review specific clients files related to SMSF advice.
The action follows surveillance conducted by the Australian Securities and Investments Commission (ASIC) into SMSF advice provided by Connect Financial Services, a corporate authorised representative of Sentry.
ASIC stated that its surveillance identified concerns regarding SMSF advice provide by Connect that related to the requirement for a Statement of Advice to be given to the client and to act in the best interests of the client and provide appropriate advice.
The regulator was also concerned about the product replacement disclosure requirements in place when one financial product was recommended to replace another product.
ASIC also stated that it was concerned "that Sentry may not have complied with its obligations as an AFS licensee to properly monitor and supervise Connect and ensure Connect was adequately trained and competent to provide SMSF advice".
ASIC stated that Sentry had co-operated during its' inquiries and had agreed to address the concerns by writing to 158 clients that received an SMSF promotional letter from Connect.
Sentry's letter would notify the clients that the letter from Connect contained personal financial advice and offer reviews and remedial action where necessary.
An independent expert would also be called in to review a further 17 client files related to the setting up of an SMSF with the expert to make recommendations regarding deficiencies, remediation and compensation where these may be relevant.
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