ASIC has banned two former advisers, one for providing false information and one for failing to act in the best interest of clients, and has made moves to have a ban reinstated on another adviser.
Banned Over False Insurance Information
The regulator banned former Guardian FP adviser, Robert Gunner of Brisbane, for seven years after he provided false information on insurance application forms sent to superannuation funds.
ASIC took the action after it found Gunner assisted clients in accessing their superannuation by advising them to acquire multiple insurance policies through their superannuation fund, and once he received commission on the insurance policies, paid those commissions to the client after deducting his own expenses.
ASIC also stated that in this course of action Gunner created insurance application forms, client file notes, client profiles and Statements of Advice that contained false information.
Gunner’s action took place between January 2014 and February 2016 during the time he was employed as an authorised representative of GuardianFP from 15 February 2013 until 4 May 2016.
He has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
Banned After Failing to Comply with Best Interest Duty
ASIC has also permanently banned former AMP Financial Planning (AMP FP) authorised representative David Fong after it was found that he acted dishonestly in the course of providing financial services and failed to comply with the ‘best interests’ duty.
Fong was a Perth based representative of AMP FP from 1 January 2004 to 22 December 2014 and provided advice on life insurance and superannuation.
He was banned after ASIC become concerned about his advice processes, including how he narrowed the subject matter or scope of the advice he provided, the manner in which he arranged for the completion of client paperwork and the integrity of the records he retained pertaining to the financial services provided.
Specifically, ASIC found Fong had engaged in dishonest conduct relating to client records and applications for financial products, and provided advice to clients that did not comply with the best interest duty and did not leave them in a better position having received the advice.
Fong has the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
ASIC Moves to Reinstate Adviser Ban
The Federal Court has rejected a decision by the Administrative Appeals Tribunal (AAT) to overturn a ban placed on former financial adviser, Gerard McCormack.
McCormack had been banned by ASIC for five years, in late 2016, for engaging in misleading and deceptive conduct in mid-2013 but had applied to the AAT for a review of ASIC’s decision.
At the review the AAT stated the circumstances of the case were rare and a banning order would not serve to protect the public nor prevent similar behaviour in the future, however, ASIC filed a Notice of Appeal in the Federal Court against the AAT’s decision.
In setting aside the AAT’s decision the Federal Court stated it had failed to properly apply the principles of general deterrence and that the decision not to ban Mr McCormack was an error of law.
The matter has been remitted back to the AAT to have the matter re-determined.
