ASIC has banned a former employee representative of Westpac Financial Consultants Ltd (which is a part of the Westpac Banking Corporation), from providing financial services for eight years.
ASIC found that during the period between July 2010 to April 2014 he was was involved in the provision of inappropriate advice to clients and also involved in the failure to provide one client with a written statement of advice.
ASIC found that he implemented a “one size fits all” advice strategy that
- did not tailor advice to clients’ personal and financial circumstances; and
- led to clients being over insured with inappropriate level of premiums.
ASIC also found he had
- made one misrepresentation concerning tax savings; and
- not be competent to provide financial services.
ASIC Deputy Chair Peter Kell said, ‘Advice needs to be tailored to the client’s needs and circumstances, and an advice provider must not lose sight of the needs of their client.’
His behavior was reported to ASIC in May 2014.
A customer remediation process was undertaken and 29 former clients were paid a total of $1,127,543 made up of advice fees, refunds of premiums for inappropriate advice and market loss relating to investments.
Background
This outcome is a result of ASIC’s Wealth Management Project. The Wealth Management Project was established in October 2014 with the objective of lifting standards by major financial advice providers. The Wealth Management Project focuses on the conduct of the largest financial advice firms (NAB, Westpac, CBA, ANZ, AMP and Macquarie).
ASIC’s work in the Wealth Management Project covers a number of areas including:
- Working with the largest financial advice firms to address the identification and remediation of non-compliant advice; and
- Seeking regulatory outcomes, when appropriate, against licensees and advisers.
ASIC listed more than 20 named advisors who have been banned.
