A veteran financial adviser has been permanently banned after failing to provide a statement of advice (SoA) to more than 30 clients in relation to life insurance advice and failing to repay nearly $2 million borrowed from clients.
The adviser, Damian O’Rourke, of Brisbane, was employed as a representative of AMP Financial Planning Pty Ltd (AMP) from 1983 until 10 April 2014 and was banned by the Australian Securities and Investments Commission (ASIC) after an investigation which found he also failed to provide appropriate advice
Specifically, ASIC stated O’Rourke had failed to comply with requirements of the Corporations Act by failing to provide an SoA to 31 clients advising them to apply for income protection insurance, life insurance, trauma insurance and/or total and permanent disability insurance as a new product, or to replace an existing insurance product.
ASIC also stated O’Rourke had failed to make reasonable inquiries in relation to a client and failed to provide that client with appropriate advice when he provided that client with advice in relation to insurance and superannuation products in September 2012.
The regulator also stated he failed to act in the best interests of a client in relation to insurance and superannuation product advice he provided in November 2013 and failed to give priority to that client’s best interests over his own.
Additionally, ASIC said it had found reason to believe O’Rourke was not of good fame and character as he borrowed more than $2 million from clients and others but had only repaid approximately 10% of the total amount borrowed.
In regard to the loans, ASIC stated O’Rourke did not ensure clients were provided with independent legal and financial advice, did not document all of the loans, and sought loans from clients when he knew he had not repaid earlier loans.
O’Rourke has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
