Ex-Westpac, Commonwealth FP adviser banned
The Australian Securities and Investments Commission (ASIC) has banned Peter Jianchao Xu for five years from providing financial services following surveillance.
The Perth financial adviser was an authorised representative of Westpac Banking Corporation, Commonwealth Financial Planning, and most recently Neo Financial Solutions.
ASIC had reviewed a sample of Xu’s advice files and found he had failed to comply with financial services laws including best interests duty and the requirement to provide appropriate advice.
ASIC found Xu repeatedly recommended clients take out a new insurance policy instead of checking whether it would be beneficial if they remained with or modified their existing policies.
They had also found an ongoing failure by Xu to consider his clients’ personal circumstances when providing personal insurance advice, which led the risk of his clients’ being under-insured.
Xu had the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
AUTHOR
Chris Dastoor
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
