{"id":56946,"date":"2021-08-03T14:04:31","date_gmt":"2021-08-03T04:04:31","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=56946"},"modified":"2021-08-03T14:04:31","modified_gmt":"2021-08-03T04:04:31","slug":"licensee-liable-for-failing-to-supervise-financial-adviser","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2021\/08\/03\/licensee-liable-for-failing-to-supervise-financial-adviser\/","title":{"rendered":"Licensee Liable for Failing to Supervise Financial Adviser"},"content":{"rendered":"

The Federal Court has found that RI Advice Group failed to take reasonable steps to ensure that its former financial adviser, John Doyle<\/strong>, provided appropriate advice to clients, acted in the clients\u2019 best interests and put the clients\u2019 interests ahead of his own, states ASIC.<\/p>\n

A statement from the regulator says the Court found RI Advice, an Australian financial services licensee, \u201c\u2026did not have any adequate processes to identify when advisers were avoiding advice quality checks or recommending non-approved financial products. The Court said these were serious flaws which should have been apparent to RI Advice\u201d.<\/p>\n

ASIC states that the Court also found RI Advice failed in its obligations as a financial services licensee.<\/p>\n

The commission adds the Court had previously made declarations that Doyle had breached his best interests obligations by giving inappropriate advice and failing to put his clients\u2019 interests first. At the time, Doyle was an authorised representative of RI Advice.<\/p>\n

…financial advice licensees need to understand that they can be .liable if their advisers do not act in the best interests of their clients…<\/p><\/blockquote>\n

\"\"<\/a>
Sarah Court.<\/figcaption><\/figure>\n

ASIC Deputy Chair Sarah Court<\/strong> says that financial advice licensees need to understand that they can be liable if their advisers do not act in the best interests of their clients and do not prioritise their clients\u2019 interests over their own.<\/p>\n

\u201cASIC commenced this proceeding because of the harm caused to investors when advice is not appropriate,\u201d she says, noting that in some cases, Doyle\u2019s clients were retired, or approaching retirement.<\/p>\n

\u201cLicensees need to have proper systems and processes in place to monitor the advice given by advisers to make sure consumers are protected,\u201d Court notes.<\/p>\n

ASIC says the penalty hearing for RI Advice and Doyle has not been set. A case management hearing will be listed for a later date.<\/p>\n

As background ASIC says Doyle was an authorised representative of RI Advice between May 2013 and June 2016 when RI Advice was owned by ANZ Banking Group. RI Advice is now owned by IOOF Holdings.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Federal Court has found that RI Advice Group failed to take reasonable steps to ensure that its former financial adviser, John Doyle, provided appropriate advice to clients, acted in the clients\u2019 best interests and put the clients\u2019 interests ahead of his own, states ASIC. A statement from the regulator says the Court found RI […]<\/p>\n","protected":false},"author":24,"featured_media":56949,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,6],"tags":[],"class_list":["post-56946","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","category-dealer-groups"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/56946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=56946"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/56946\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/56949"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=56946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=56946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=56946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}