ASIC Bans Two Advisers Over False Insurance Applications

ASIC has permanently banned two Victorian financial advisers after it found they had engaged in dishonest and deceptive conduct by falsifying life insurance applications.

The regulator banned Matthew Manson Wallis and Rochelle Roanna Manoharan, who are directors of Found Financial Services, which operated in Brunswick, Victoria, and is a former Corporate Authorised Representative of RI Advice Group.

ASIC found that between June 2015 and December 2015, Wallis and Manoharan submitted insurance applications to Zurich Australia that were not requested by the clients, and were made without their knowledge; and contained false information.

The false insurance applications were for life, TPD , trauma and income protection insurance and were made to maximise the up-front commission received by Found Financial which paid the premiums for a short time to make the policies appear genuine, before they lapsed due to non-payment.

ASIC stated the conduct of both Wallis and Manoharan was dishonest, and they had both engaged in misleading and deceptive conduct, and also had reason to believe that neither are of good fame or character.

Wallis and Manoharan have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.