November 14, 2017
A Queensland financial adviser has agreed to cease providing financial services for five years after ASIC found he failed to consider the best interests of clients while providing life insurance advice.
ASIC stated it had accepted an enforceable undertaking (EU) from Dean Scott Hartmann, of Toowoomba, Queensland, after surveillance raised concerns about his advice to clients.
Under the EU, Hartmann will be unable to provide financial services for at least five years and will be required to follow supervision requirements if he re-enters the industry.
These requirements include having each piece of advice audited by his licensee for a period of six months and recording and implementing any changes requested by the licensee.
Hartmann was an authorised representative of Hart Ensole Pty Ltd from 1 August 2012 to 30 June 2017 and following a review of client files provided by the company, ASIC found he:
- failed to act in the best interests of clients when recommending a switch from an existing insurance arrangement into alternative products
- failed to make reasonable inquiries into clients’ relevant objective, financial situation and needs
- failed to conduct reasonable investigations into clients’ objectives for insurance requirements or insurance products that could satisfy clients’ objective
- advised clients to switch insurance arrangements and superannuation funds when it was not appropriate to do
ASIC also acknowledged Hartmann’s cooperation with the regulator during its investigation.