The Financial Planning Association (FPA) has fined and expelled an adviser on the same day he was banned by ASIC from providing financial services for five years.
The FPA made the decision to act against Darren Tindall, of Orange, NSW after its Conduct Review Commission (CRC) found he was guilty of three breaches of the FPA’s Code of Professional Practice and recommended immediate expulsion and a fine of $16,000.
Tindall was also hit with a bill for costs of $12,400 relating to the FPA’s investigation and disciplinary proceedings.
The CRC stated it had applied these penalties as it considered Tindall’s actions (see: Risk Adviser to Appeal ASIC Action) were at the extreme end of conduct amounting to a breach.
The CRC also stated it was not possible to impose a reprimand, apology or undertaking, nor suspend his rights and privileges as a member, as Tindall had resigned his FPA membership in August 2014.
In a submission to the CRC, Tindall said lesser fines should be applied as he gained no financial benefit by his actions, was attempting to help his client, was an inexperienced adviser at the time and that a heavy penalty would cause significant financial harm.
In its submission to the CRC, the FPA stated Tindall had not “in any way acknowledged the conduct constituting the serious breaches and there are no reasonable grounds to expect that he will ever do so”.
The CRC stated expulsion was necessary to protect the profession and the public and its decision was not aligned to that of ASIC in any way, even though both decisions were initially announced in January before being applied a month later.
ASIC had initially banned Tindall for five years on 9 January 2017 despite his efforts to appeal the ban through the Administrative Appeals Tribunal (AAT).
At that time, Tindall had applied to the AAT for a stay of the ban and a review of ASIC’s decision on 17 January, leading to him being listed as both ‘banned’ and ‘current’ in his status as an adviser on the ASIC Financial Adviser Register.
The AAT heard the stay application on 27 January and on 9 February refused the stay, but has yet to set a date for the review of ASIC’s banning decision.
In setting the ban, ASIC stated the action related to Tindall’s time as an authorised representative of Roan Financial Group between 9 May 2013 and 19 May 2014.
ASIC stated it had found Tindall had, during that time, engaged in misleading and deceptive conduct on a client’s behalf by failing to disclose their pre-existing medical conditions on an insurance application submitted to an insurer.
ASIC also claimed Tindall had engaged in dishonest conduct by not disclosing the medical conditions in transferring that insurance obtained to a new insurer; and made misleading comparisons about superannuation products to four clients, which induced those clients to switch their superannuation.
Editor’s Note: This story was first published on 10 February 2017, and was updated on 14 February to include information regarding the FPA sanctions.
