ASIC bans financial advisers over SOA compliance issues
ASIC has banned the directors of a Sydney advice firm from providing financial advice for a period of five years after it found they had allegedly failed to comply with statements of advice requirements and engaged in deceptive conduct.
ASIC has banned advisers Gerald Cummings and Craig Allen for a period of five years. Mr Cummings was a director and authorised representative of Premier Wealth Management Financial Services, while Mr Allen is the current director, authorised representative and responsible manager of Premier Wealth Management.
Premier Wealth Management has also been stripped of its Australian Financial Services (AFS) Licence for failing to do “all things necessary” to ensure financial services covered by the licence were provided efficiently, honestly and fairly.
Premier Wealth Management is also being held accountable for failing to ensure its representatives were adequately trained and competent.
ASIC found Mr Cummings, as the director and authorised representative of Premier Wealth Management, failed to give Statements of Advice when there had been significant changes in clients’ circumstances and the basis for the advice. He also allegedly engaged in misleading or deceptive conduct in relation to review checklists on client files and failed to implement a system to refund clients that had been overcharged fees.
Mr Allen, current director and responsible manager of Premier Wealth Management, is believed to have been involved in Mr Cummings’ non-compliance with the requirement to provide Statements of Advice.
According to ASIC, Mr 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.
Moreover, as noted by the corporate regulator, 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.
“ASIC found that both Mr Cummings and Mr 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,” the corporate regulator said.
As such, both men have been banned 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 for a period of five years.
