Adviser receives 5-year ban for poor super advice
A financial adviser has been banned for five years after ASIC found they had failed to act in the best interest of clients when advising them to rollover their existing super to other funds.
The Australian Securities and Investments Commission (ASIC) has banned Kimberley Holgate of Wagga Wagga, NSW, from providing financial services for five years. Ms Holgate was an authorised representative of Commonwealth Financial Planning Limited from January 2014 to October 2015.
ASIC found that Ms Holgate engaged in conduct that was likely to mislead – cutting clients’ signatures from documents held on file and pasting them onto new documents.
It also found that she did not act in the best interests of her clients when advising they rollover their existing super to a new product issued by Colonial First State, a related entity of the Commonwealth Bank of Australia.
She also failed to act in the best interests of her clients when advising them to cancel existing insurance policies and apply for personal insurance issued by CommInsure, and when telling them to acquire financial products which entitled her, her employer and its related entities to a financial benefit, said the corporate regulator.
“The super advice provided by Ms Holgate did not result in any improvement to the clients’ current financial position,” said ASIC.
Ms Holgate has to the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.