Former Guardian Adviser Permanently Banned

A former adviser with Guardian Advice has been permanently banned from providing financial services after he was found to have placed his own interests ahead of clients.

The adviser, Andrew Moroney of Point Cook, Victoria, was found by the Australian Securities and Investments Commission (ASIC) to have annually recommended that his clients replace one insurance policy with another with Moroney receiving a high up-front commission payment each year for each replaced insurance policy.

ASIC stated that it permanently banned Moroney, who was an authorised representative of Guardian Advice from 20 March 2006 to 3 April 2014, after finding he:

• failed to make reasonable enquiries into the circumstances of the clients before providing advice to them to enter into a new life insurance policy;
• failed to conduct reasonable enquiries into insurance policies, both those already held by clients and alternative policies;
• incorrectly stated he had undertaken research on alternative life insurance policies, when this was not done;
• failed to demonstrate that the advice he provided to the clients was appropriate and in the best interests of the clients, based on their circumstances; and
• prioritised his own commercial interests ahead of the interests of the clients.

Moroney has the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.

ASIC has also permanently banned the former owner of Financial Planning Services (Australia), Darren Wise, of Rhodes, NSW, from providing financial services.

Earlier this year Wise pleaded guilty in the Maroochydore Magistrates Court to three charges of dishonestly gaining a benefit, the making of false documents, and use of false documents involving over $1 million of his clients’ assets.

ASIC stated the conduct occurred while Wise was a financial adviser with Financial Planning Services (Australia), which he owned from 5 September 2000 until he sold it on 9 May 2008.

The regulator stated it made the decision to permanently ban Wise after taking into account his misleading and deceptive conduct regarding the sale of a client’s securities without their authorisation or knowledge as well has continuing to mislead and deceive the client about the sale by making falsely represented dividend payments.

While finding that Wise had failed to comply with financial services laws ASIC also stated he was likely to contravene financial services law in the future and was not of good fame or character.

Wise has a right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.