Damien O’Rourke, a former AMP financial planner from Brisbane, has been banned from providing financial services after an investigation found he had failed to comply with key requirements of the Corporations Act.
In a public statement, ASIC said Mr O’Rourke had failed to provide a statement of advice to 31 clients when he advised them to apply for income protection insurance, trauma insurance and total and permanent disability insurance as a new product or to replace an existing insurance product.
ASIC also stated that he failed to make reasonable inquiries in relation to a client and failed to provide that client with appropriate advice when he provided that client with advice in relation to insurance and superannuation products in September 2012.
According to ASIC, Mr O’Rourke did not act in the best interests of a client in relation to insurance and superannuation product advice he provided in November 2013 and failed to give priority to that client’s best interests over his own.
Investigations by ASIC also revealed Mr O’Rourke was not of good character, as he borrowed over $2 million from clients and others in circumstances where only approximately 10 per cent of the amount loaned was repaid.
His clients were not provided with independent legal and financial advice and he did not document the loans, according to ASIC.
ASIC deputy chair Peter Kell said financial advisers must act in the best interests of their clients.
“ASIC will take action against financial advisers who do not comply with their obligations,” said Mr Kell.