ASIC Bans Former Risk Adviser

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A former Rockhampton adviser who failed to take into account his clients’ existing insurance arrangements when providing advice has been banned for five years by the Australian Securities and Investments Commission (ASIC).

Michael Irwin, who was an authorised representative of Synchron, was issued with the ban after ASIC found that he did not have a reasonable basis for his advice, and failed to provide Statements of Advice (SoAs) that disclosed the basis on which his advice was given.

In particular, Mr Irwin failed to take into account his clients’ existing insurance arrangements when recommending that they take out new insurance products, and did not adequately disclose to clients why the asset portfolio implemented for the clients departed from the asset allocation set out in the SoAs.

ASIC is focused on removing financial advisers whose behaviour undermines confidence and trust in the advice industry

ASIC Deputy Chairman, Peter Kell, said: “Mr Irwin’s conduct demonstrates a clear failure of his obligation as a financial adviser to act in the interests of his clients and ensure they are in an informed position when accepting his advice. ASIC is focused on removing financial advisers whose behaviour undermines confidence and trust in the advice industry.”

Synchron Director, Don Trapnell, told riskinfo that the licensee had moved quickly to terminate Mr Irwin’s authority after ASIC revealed its concerns.

“We conducted an in-depth audit of Mr Irwin’s advice processes, and we also spoke to a number of his clients. As a result, we reported a substantial compliance breach to ASIC and immediately terminated Mr Irwin’s representative status.”

Mr Trapnell also revealed the licensee had allocated significant resources towards reviewing all Mr Irwin’s client files to identify all impacted clients.

“We’re working with individual clients and life companies to ensure we get the best possible outcome for the clients affected. We’ve also appointed an external, independent auditor to review our compliance processes, and to conduct regular spot-checks across our network.

“Throughout the whole process, we have cooperated fully with ASIC, and we appreciate the way they have approached this matter.”



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