Risk Adviser Banned

A Sydney-based risk adviser has been permanently banned from providing financial services as a result of falsifying more than 60 life insurance policies.

The Australian Securities and Investments Commission (ASIC) issued the ban to Susan Heathwood, operating as an authorised representative of GuardianFP, after it found she had falsely arranged life insurance policies for clients in order to collect the commission.

According to ASIC, Ms Heathwood submitted insurance applications on behalf of 65 clients who had not requested a policy be taken out on their behalf.  In the process of submitting the applications, Ms Heathwood falsified personal information about her current and former clients, including their height, weight, smoker status and occupation.

In order to maintain the deception, Ms Heathwood listed her own post office box and telephone number on the applications. 

Ms Heathwood was an authorised representative of GuardianFP from 2005 until May 2011, and an employee of Jalee Consulting Group.

In response to the ban, Guardian FP issued the following statement:

Guardian Advice terminated its relationship with Ms Heathwood and Jalee as a result of her behaviour and reported her to ASIC.

No Guardian Advice customers were affected in the process.

Ms Heathwood’s conduct was investigated by ASIC, and Guardian Advice actively worked with the regulator to help identify the fraudulent cases.

Guardian Advice agrees and welcomes ASIC’s decision to permanently ban the adviser.

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