Former Perth financial adviser Jason Sean Atkins has been banned from providing financial services for a period of three years.
In a public statement, ASIC said Mr Atkins provided advice to clients to establish an SMSF and use limited recourse borrowing arrangements (LRBAs) to fund the purchase of real property that was in breach of the best interests duty introduced under the Future of Financial Advice (FOFA) reforms.
ASIC said Mr Atkins had “failed to act in the best interests of four clients”, and was not satisfied that Mr Atkins had identified the subject matter of the advice.
It was also not satisfied that he had conducted a reasonable investigation into the financial products that might achieve the objectives and meet the needs of the client that would reasonably be considered as relevant to advice on that subject matter, or understood what was required of him to comply with the best interest duty.
Mr Atkins has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
ASIC Commissioner John Price said financial advisers must act in the best interests of their clients.
“ASIC is committed to improving conduct in the wealth management industry, and we will act to remove individuals who do not live up to the high standards expected of financial advisers,” said Mr Price.
ASIC will be using the very vague wording in the legislation around BID to crucify financial advisers from the sectors that they dont like – banks and IFAs – and those providing advice that they dont like – SMSF’s in general & LRBA’s in particular.
What you can be sure of is that there will never be any review of an adviser linked to a Union Super Fund that recommends a client stay with the Union Super Fund that the adviser is employed by, nor where they recommend that the client maintains the sub-standard insurance that is offered by most Union Super Funds. It would be interesting to see the stats on how many clients who go to see a Union Super Fund adviser move into or retain a Union Super Fund product. There was a stink when it was found over 70% of AMP clients ended up in AMP products, and that resulted in a massive EU being placed on AMP. The vertically integrated Union Super Funds would be smashing that number out of the park, but there will never be an EU placed on these guys.
ASIC has a significant bias and blindspot in relation to their activities. All because the advisers charge fees and dont take commissions. Never mind the fact that the funds themselves take commissions when members increase their insurance above the level of the base default units. Hypocrisy much? And never mind the fact that these teams of advisers and the people giving personal advice given over the phone with no advice documents in the guise of general advice need to be paid from somewhere. Every member in a Union Super Fund is paying for all of this, but only a few are benefiting from it. That sounds like a fee for no advice situation to me. I’ll be waiting for ASIC to start taking action….sometime in the next millenium….
I personally know these clients that Mr Atkins has been banned due to ASIC using the power of “BID”. I can say every single client is in fact extremely satisfied with Mr Atkins, could not be happier with his advice and are forever greatful and provided testimony they are in much better position after receiving advice! Given ASIC believes Mr Atkins did not act in the clients best interest and thus destroyed a 20 year career in the process wouldn’t it be only natural they contact each client face to face given they are the people ASIC keep saying they want to “protect” Who really does determine “BID”, isn’t it all about the client? ASIC has a lot to answer for because if they are deciding advisers have failed “BID” when clients are completely happy and feel they have benefited from advice then the whole financial planning industry and advisers are in serious trouble !
Assuming this comment is not written by someone associated with Jason Atkins it is very concerning. BID was always a bullshit law that had limited objectivity which is scary. If the clients are happy then you have to wonder what else needs to be done to show BID (this of course assumes he kept his tick box compliance requirements)
And if the comment was written by Jason or someone associated with him?