- New Member Owned Advice Group Forms
- ASIC Wins Trio of Actions Against Advisers
New Member Owned Advice Group Forms
Industry super fund, First State Super will create a 200 planner strong advice group following a binding settlement with State Super to acquire its advice business StatePlus.
The deal, which is scheduled for completion in June 2016, would bring together First State Super Financial Services and StatePlus, which would have more than $21 billion in retirement funds under advice and more than 200 planners in metropolitan and regional centres throughout Australia.
StatePlus, formerly State Super Financial Services, is currently owned by the SAS Trustee Corporation (STC) and provides financial advice to public sector employees and their families, while First State Super Financial Services provides advice to fund members who typically work in education, health and service based vocations, including law enforcement, and emergency services.
First State Super, Chief Executive, Michael Dwyer said the two businesses were highly compatible and had a shared heritage of delivering retirement solutions to public sector employees. He added that both businesses would continue to operate as separate and distinct businesses while future plans were developed.
ASIC Wins Trio of Actions Against Advisers
The Australian Securities and Investments Commission (ASIC) has scored a trifecta in actions taken against advisers this week with one being removed from the industry via enforceable undertaking, one pleading guilty to breaching director’s duties and the third having a court case preventing him from being banned dismissed by the court.
ASIC accepted the EU from Brian Dobinson, of Redcliffe, QLD, which permanently prevents him from being involved in any way with the provision of financial services or products, after it found he failed to act in the best interest of his clients between 1 October 2010 and 11 December 2015.
During that time Dobinson was an authorised representative of Total Financial Solutions Australia Limited (TFSA) and offered advice via entities related to him including Dobinson Financial, Dobinson Holdings Pty Ltd and Lighthouse Redcliffe Pty Ltd.
ASIC found Dobinson used a single advice model with all clients, regardless of circumstances and provided super switching advice which did not consider the best interests of the client and thus advised clients to switch funds when it was not appropriate to do so.
The regulator also found he disclosed fees and charges obscured the true cost of a recommended product and failed to demonstrate the ability, professional skills and knowledge required to competently provide financial services.
TFSA has begun a remediation program for clients who received advice from Dobinson with the aim of providing appropriate remediation where the advice was not in their best interests.
A separate investigation into a former Genesys Wealth Advisers Limited authorised representative has resulted in him pleading guilty to breaching director’s duties.
ASIC begun its investigation into the actions of Andrew Peter Cosgrove, a former director of Vangrove Financial Planning Pty Ltd, after the business was placed into administration on 10 May 2012.
At that time Cosgrove was retained by the Administrator as a consultant and was authorised to provide advice to its existing clients.
However, ASIC found that between 26 June 2012 and 12 July 2012 he issued invoices to three clients for payment of fees for financial advice instructing them to make payments to the Cosgrove Investment Trust rather than to Genesys, as authorised by the Administrator.
Cosgrove appeared in the Brisbane Magistrates Court on 13 May 2016 and pleaded guilty to three charges of breaching his director’s duties and was discharged without conviction upon entering into recognisance in the sum of $3,000 on condition that he would be of good behaviour for three years.
In other legal action the Federal Court dismissed an application made by Rommel Panganiban, of Bella Vista, New South Wales, to restrain ASIC from making a decision on a possible financial services banning order against him.
Panganiban, a current authorised representative of Lionsgate Financial Group Pty Ltd, was issued with a notice of hearing in mid-November 2015 following ASIC’s concern around advice provided to clients while he was an authorised representative of AMP Financial Planning.
Following the hearing on 1 March 2016 Panganiban requested access to documents held by ASIC, including client files under consideration, but was refused by ASIC on the on the basis of relevance and confidentiality obligations owed by ASIC.
As a result of this Panganiban filed an application in the Federal Court seeking orders that ASIC provide him with the requested material and that it be restrained from making a decision in relation to the Hearing Notice and that by withholding the client files, ASIC had denied him procedural fairness.
However, the Federal Court dismissed the application and awarded costs to ASIC stating the Panganiban was not denied natural justice and in the event ASIC decides to make a banning order it could be reviewed at the Administrative Appeals Tribunal.
An ASIC delegate will now consider material prepared as part of an ASIC surveillance into Mr Panganiban’s conduct to determine whether a ban from financial services is warranted.
