ASIC has accepted an enforceable undertaking (EU) from a NSW adviser after it found he switched insurance and superannuation for clients without considering their current arrangements.
The regulator accepted the EU from James Fraser of Cronulla, New South Wales, after it was found that he failed to act in the best interests of his clients. Fraser was an authorised representative of MyPlanner Australia at the time of the conduct, before recently becoming an authorised representative of MyPlanner Professional Services.
As part of its investigation, ASIC found that Fraser had advised clients to establish self-managed superannuation funds, and switch existing superannuation and insurance arrangements into those funds without appropriate consideration of the clients’ existing arrangements.
ASIC also found Fraser failed to disclose information about relationships with external parties, or the remuneration agreements with those parties that would capable of influencing the advice, and failed to provide a statement of advice when personal advice was provided.
Under the EU, Fraser has agreed he will not provide financial services for at least two years and if he wishes to re-enter the industry he will be required to complete additional self-managed superannuation fund training and adhere to supervision requirements.
The acceptance of the EU comes after ASIC recently imposed additional conditions on the Australian Financial Services Licencee of MyPlanner after finding it was providing poor financial advice, and lacked adequate monitoring and supervision of its representatives (see: ASIC Imposes Conditions on MyPlanner Licence).
