ASIC issues 4-year ban for Hobart adviser over negative gearing

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June 25 2021
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Australia’s securities regulator has issued a four-year ban for a Tasmanian financial adviser.

ASIC has brought down the ban hammer, prohibiting Hobart-based financial adviser Hannah Jennings from practising for the next four years.

In a statement, the securities regulator said, “Ms Jennings failed to act in the best interests of her clients by providing advice that was inappropriate in light of her clients’ relevant personal circumstances.”

Specifically, ASIC said Ms Jennings recommended that clients persist with negative gearing strategies despite being unable to service the relevant borrowing arrangements.

“In providing this advice, Ms Jennings had no regard to the clients’ relevant personal circumstances, their cash flow position or their ability to cover margin calls. Ms Jennings also failed to consider an exit strategy for her clients as well as appropriate personal insurance cover,” ASIC said.

In addition to this, the regulator said that Ms Jennings failed to keep proper records and was neither trained nor competent enough to provide financial services.

“Her lack of understanding about her legal and professional obligations as a financial adviser created additional risks to her current and future clients,” they said.

When the banning took effect on 1 April 2021, Ms Jennings applied for a review of ASIC’s decision through the AAT. She withdrew this application on 8 June 2021.

According to the organisation, the move represents part of ASIC’s broader mission to “improve standards across the financial services industry”.

Earlier this month, ASIC chair Joe Longo acknowledged that the organisation was entering a new phase in its enforcement and regulatory work.

“This is a very challenging time for ASIC as it emerges from the legacy of the financial services royal commission, the COVID-19 pandemic and recent commission-level changes,” Mr Longo said.

About the author

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times.

About the author

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times.

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