ASIC has banned Gold Coast-based financial adviser Jeneve Matai from providing financial services for four years.
A statement from the regulator says the banning took effect on 13 December 2022 and that Matai applied to the Administrative Appeals Tribunal seeking a review and stay of ASIC’s decision.
It says that the AAT “…refused the stay application on 22 February 2023 but no hearing date has been set for the substantive review of ASIC’s decision.”
‘Layered Advice’ Strategy
ASIC says that Matai provided advice in accordance “…with what his licensee called a ‘layered advice’ strategy whereby the advice was separated into pre-determined topics, irrespective of the client’s personal circumstances, goals or advice needs.”
It adds that the layered advice strategy “…was a process by which clients were provided with superannuation and insurance advice separately, even though the insurance was held within the superannuation fund.”
The commission says Matai was an authorised representative and financial adviser of National Advice Solutions from 4 July 2019 to 2 December 2022. He was also the head of advice for the superannuation team, and assistant training manager at a corporate authorised representative of National Advice Solutions.
It notes that in reviewing a sample of advice provided by Matai, ASIC found that he “…did not act in the best interests of clients, the advice was not appropriate, and he prioritised his interests (or that of his AFS licensee) over the interests of the client.”
…ASIC found that by using the layered advice strategy, the advice was templated, inappropriately scoped…
The statement says that ASIC “…found that by using the layered advice strategy, the advice was templated, inappropriately scoped, and Matai failed to identify or consider the relevant circumstances of the clients when preparing the advice. This included when recommending the client participate in an ongoing advice arrangement.”
It adds that it also found that although Matai was not responsible for the design and implementation of the layered advice strategy “…as a financial adviser he is required to comply with financial services laws, and cannot assign his obligations to others.”
The commission says Matai also audited the files of other financial advisers on an as needed basis, and it found that “…he failed to identify issues that a competent person auditing the files would have identified.”
As background, ASIC says that it had previously taken administrative action against National Advice Solutions and its responsible managers.
“On 13 December 2022, ASIC cancelled the AFS licence of National Advice Solutions because the licensee failed to ensure that the financial services covered by the licence were provided efficiently, honestly and fairly. One of the factors that contributed to the failing was the adoption of the layered advice strategy,” it states.
