October 11, 2018
The FPA has announced that high profile financial adviser Sam Henderson has been found to have breached its Code of Professional Practice.
The Association stated its independent disciplinary body, the Conduct Review Commission (CRC), found that nine out of ten alleged breaches presented to it were proven but did not release any information regarding possible sanctions.
The Determination of the CRC, available on the FPA’s website, noted the allegations related to a client who sought financial advice in late 2016 from Henderson but was dissatisfied with the advice provided.
In January 2017, the client raised the matter with Henderson, who refunded fees charged for the preparation of a Statement of Advice, before the matter was taken to the FPA as a complaint in March 2017.
The CRC stated that Henderson failed:
- to properly consider and identify strategies which were appropriate to the complainant’s personal circumstances and objectives
- to properly consider the complainants existing strategy strategies in regards to superannuation, investment and property recommendations
- to put the clients’ interests first in managing conflicts of interest and in failing to prioritise the client’s interests
FPA Chief Executive, Dante De Gori said, “FPA members are required to uphold the highest ethical standards within the financial planning profession. Mr Henderson failed to meet those standards”.
“The FPA is committed to standing with Australians for a better financial future and enforcement of the FPA Code is an important aspect of that commitment,” he added.
Henderson appeared before the Financial Services Royal Commission in April this year which claimed in its closing remarks to the second round of hearings that he and his practice may face criminal charges in regards to the advice provided to the complainant (see: Award Winning Practice May Face Criminal Charges).