{"id":63945,"date":"2022-12-20T14:03:57","date_gmt":"2022-12-20T03:03:57","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=63945"},"modified":"2022-12-20T14:03:57","modified_gmt":"2022-12-20T03:03:57","slug":"gold-coast-financial-service-providers-banned","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2022\/12\/20\/gold-coast-financial-service-providers-banned\/","title":{"rendered":"Gold Coast Financial Service Providers Banned"},"content":{"rendered":"

ASIC has cancelled the AFS licence of National Advice Solutions Pty Ltd and banned two Gold Coast-based responsible managers, Gail Glasby<\/strong> and Paul Carcallas<\/strong>, from providing financial services for a period of 10 years.<\/p>\n

A statement from the commission says it cancelled the AFS licence of National Advice Solutions \u201c\u2026because it failed to ensure that financial services covered by the licence were provided efficiently, honestly and fairly.\u201d<\/p>\n

ASIC says National Advice Solutions adopted a \u2018layered advice\u2019 strategy \u201c\u2026whereby the licensee separated the advice into pre-determined topics, regardless of the client\u2019s personal circumstances, goals or advice needs.\u201d<\/p>\n

It says the \u2018layered advice\u2019 strategy was found to \u201c…actively impede financial advisers from complying with the financial services laws, as clients were provided with expensive and templated advice that was not appropriate for their personal circumstances.\u201d<\/p>\n

\u201cUnder the strategy, clients would generally receive advice about their superannuation first, which scoped out insurance even where the client was paying their insurance premiums from their existing superannuation account.\u201d<\/p>\n

…it was inappropriate to separate out the superannuation and insurance advice as the products are so intrinsically linked…<\/p><\/blockquote>\n

It says ASIC found that in these circumstances \u201c\u2026it was inappropriate to separate out the superannuation and insurance advice as the products are so intrinsically linked that advice regarding the two topics cannot appropriately be delivered in isolation.\u201d<\/p>\n

Responsible Managers<\/strong><\/p>\n

ASIC states it found that National Advice Solutions \u201c\u2026also failed to adequately monitor and supervise its authorised representatives and maintain competence to provide the financial services covered by its licence.\u201d<\/p>\n

It says that Glasby and Carcallas were members of the Compliance Committee and the responsible managers of the AFS licence. Carcallas also performed an audit function.<\/p>\n

\u201cA responsible manager is expected to assess strategies and policies used within the business and ensure that they are consistent with the obligations of the licensee.\u201d<\/p>\n

ASIC found that Glasby and Carcallas \u201c\u2026bear part of the responsibility for the systemic failings that arose from the use of the \u2018layered advice strategy\u2019.\u201d<\/p>\n

Advice failings<\/strong><\/p>\n

The statement continues that Carcallas also provided financial advice to clients. In a sample of advice provided by Carcallas \u201c\u2026ASIC found he did not act in the best interests of clients, the advice was not appropriate, and he prioritised his interests (or that of the AFS Licensee) over the interests of the client.\u201d<\/p>\n

\u201cAs Mr Carcallas provided advice in accordance with the \u2018layered advice\u2019 strategy, the advice was templated, inappropriately scoped, and he failed to identify or consider the relevant circumstances of the clients when preparing the advice, including when recommending the client participate in an ongoing advice arrangement.\u201d<\/p>\n

Further, ASIC found that the statements of advice provided by Carcallas \u201c\u2026were defective, containing projections not based on recommendations provided and failed to include all costs associated with implementing the recommendations.\u201d<\/p>\n

\u201cASIC found that these projections were included to persuade the clients to proceed with the advice. The omission of these costs may have led clients to believe that they would have more funds available in retirement than they could realistically expect,\u201d the commission states.<\/p>\n","protected":false},"excerpt":{"rendered":"

ASIC has cancelled the AFS licence of National Advice Solutions Pty Ltd and banned two Gold Coast-based responsible managers, Gail Glasby and Paul Carcallas, from providing financial services for a period of 10 years. A statement from the commission says it cancelled the AFS licence of National Advice Solutions \u201c\u2026because it failed to ensure that […]<\/p>\n","protected":false},"author":24,"featured_media":63947,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,3],"tags":[],"class_list":{"0":"post-63945","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-compliance-regulation","8":"category-general"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/63945","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=63945"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/63945\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/63947"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=63945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=63945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=63945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}