ASIC Bans Two Sydney-Based Advisers

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ASIC has banned two Sydney-based financial advisers for five years with the regulator stating one adviser failed to give SoAs when there had been significant changes in clients’ circumstances and the basis for the advice.

A statement from the commission says that Gerald Cummings and Craig Allen have been banned for five years.

It says Cummings was a director and authorised representative of Premier Wealth Management Financial Services and Allen is the current director, authorised representative and responsible manager of Premier Wealth Management.

The bans prevent Cummings and Allen from providing any financial services, performing any function involved in the carrying on of a financial services business, and controlling an entity that carries on a financial services business.

ASIC says it found Cummings “…failed to give Statements of Advice when there had been significant changes in clients’ circumstances and the basis for the advice.

“He engaged in misleading or deceptive conduct in relation to review checklists on client files, claiming to confirm that certain tasks in the advice process had occurred when they had not.”

Cummings also failed to implement a system to refund clients that had been overcharged fees.

The ASIC statement says it found Allen was involved in Cummings’ non-compliance with the requirement to provide SoAs.

Allen had also “…audited his own files, engaged in misleading and deceptive conduct in relation to checklists on client files and had also failed to implement a system to refund any client overpayments.”

ASIC says he failed to demonstrate that he has the skills, knowledge and expertise to perform his duties as a responsible manager and financial adviser to the standard required.

both …demonstrated prolonged, wide ranging and ongoing incompetence and lacked compliance mentality…

ASIC found that both Cummings and Allen “…demonstrated prolonged, wide ranging and ongoing incompetence and lacked compliance mentality. ASIC found that they are likely to contravene financial service laws in the future.”

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

AFS Licence Cancelled

ASIC has also cancelled the AFS Licence of Premier Wealth Management Financial Services effective 24 November 2021.

ASIC says it cancelled the licence because Premier Wealth Management “…failed to do all things necessary to ensure the financial services covered by the licence were provided efficiently, honestly and fairly. Premier Wealth Management also failed to ensure its representatives were adequately trained and competent.”

Under the terms of the cancellation, Premier Wealth Management’s licence will remain in effect for 12 months solely for the purposes of maintaining its membership of the Australian Financial Complaints Authority and its obligation to hold professional indemnity insurance cover.

Premier Wealth Management has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.