Untrained adviser gets three-year ban
A former Sydney-based financial adviser has been banned from providing financial services, after the Australian Securities and Investments Commission (ASIC) found he failed to comply with the law.
ASIC banned Atish Prasad, a former authorised representative of the Lionsgate Financial Group, for three years, reporting that he "was not adequately trained or competent to provide a financial service".
The regulator reported that Prasad had failed to:
- Maintain adequate records of his advice;
- Provide a statement of advice (SOA) within the required timeframe;
- Provide an SOA that adequately set out information about the basis on which the advice was given; and
- Provide appropriate replacement product advice.
ASIC said Prasad's misconduct occurred between June 2013 and December 2013. During that time the regulator impose licence conditions on Lionsgate, due to concerns that it was not complying with its general obligations as an Australian Financial Services (AFS) licensee.
In March 2013, ASIC varied Lionsgate's AFS licence to include conditions that require the appointment of an independent expert to review all aspects of the licensee's arrangements for compliance with its general licensee obligations.
The independent expert was also to conduct Lionsgate's audit program for advice provided by its representatives for a limited period. These additional conditions were designed to guide Lionsgate in putting in place a compliance framework that ensures the advice provided is of the required standard.
AUTHOR
Nicholas O'Donoghue
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