Invest
So long, farewell: adviser banned for dodgy advice
A former Westpac and NAB financial adviser has been given the boot after providing clients with misleading superannuation information, thereby “significantly reducing” savings.
So long, farewell: adviser banned for dodgy advice
A former Westpac and NAB financial adviser has been given the boot after providing clients with misleading superannuation information, thereby “significantly reducing” savings.
The Australian Securities and Investments Commission (ASIC) has temporarily banned Brisbane-based financial adviser Christopher Ramsay from providing financial services after “failing to act in the best interests of his clients”.
Additionally, Mr Ramsay was found to have given inappropriate advice.
He has been banned for five years, ASIC said on Monday.
Mr Ramsay was an employee representative of Westpac Banking Corporation between 2010 and 2015, and was an authorised representative of GWM Adviser Services from 2015 to 2017. GWM is a company wholly owned by NAB.
ASIC said, “Mr Ramsay failed in his obligations when he provided advice to his Westpac and NAB-subsidiary GWM clients to switch their superannuation and insurance products.
“In some cases he failed to make appropriate inquiries to assess whether the clients' existing products met the clients' needs.
“In other cases, ASIC found that Mr Ramsay provided misleading information to support his recommendations for clients to switch products.”
For example, ASIC continued, the financial adviser had provided misleading fee comparison tables that suggested a recommended fund was cheaper than clients’ existing funds.
In the instances of poor advice, it was either not the case that the recommended fund was cheaper, or Mr Ramsay was comparing dissimilar fee structures.
ASIC also found that he had provided clients with statements in advice documents that said the client’s insurer did not offer income protection insurance, even though the client’s insurer did.
“Clients paid substantially more for some products than they had previously paid and had understood they would pay,” ASIC said, laying this development at the foot of the former financial adviser’s failings.
“In some cases, the higher cost of products recommended significantly reduced the clients' superannuation savings without the clients' knowledge.”
ASIC noted that Mr Ramsay has the right to appeal.
Earlier this year, ASIC blasted the country’s five biggest financial services firms for failing to adequately manage conflicts of interest.
Arguing that “improvements are needed”, the watchdog said that ANZ, CBA, NAB, Westpac and AMP and their subsidiaries, which includes GWM Adviser Services, have areas for improvement.
ASIC found that where clients were advised to switch to in-house products, in 75 per cent of files reviewed, the advisers “did not demonstrate compliance with the duty to act in the best interests of their clients”.
“Further, 10 per cent of the advice reviewed was likely to leave the customer in a significantly worse financial position,” ASIC continued, noting that it would ensure remediation occurs.
However, in its release on Monday, the watchdog did not specify which superannuation funds Mr Ramsay switched clients onto.
The ban comes just days after the banning of Charter Financial Planning’s Brenton John Poynter.
ASIC found that Mr Poynter had deducted $39,700 in fees from 10 clients’ investment accounts for financial advice that had not been provided.
Charter Financial Planning operates as a subsidiary of AMP.
Spending
Buy a pair, give a pair claim costs $3.5m
Eyewear retailer Oscar Wylee has been ordered by the Federal Court to pay $3.5 million in penalties for misleading or deceptive conduct and making or misleading representations about its charitable do...Read more
Spending
Single mums can afford the basics due to pandemic: report
Australian single mothers are no longer skipping meals to feed their children, being forced to wear the poorest clothing or having to steal nappies as changes to social benefits due to the COVID-19 p...Read more
Spending
Why the iron price boom means you pay more for an iPhone
A strong Australian dollar spurred on by the high price of iron ore means Australians are now paying more for an iPhone relative to 12 months ago, new research has shown. ...Read more
Spending
Buy now, troubles later?
Almost one in three people who use buy now, pay later services is finding themselves in financial trouble, new research has found. ...Read more
Spending
Consumers push for locally made products
Australians are increasingly supporting locally produced products as the COVID-19 pandemic revealed weaknesses in the Australian economy as well as an over-reliance on foreign trading partners, accord...Read more
Spending
Petrol prices tumble but record gross margins mean you pay more
The average petrol price in the June quarter fell to its lowest level in 21 years in real inflation-adjusted terms as a result of the recent lockdowns and geopolitical tensions, but gross retail margi...Read more
Spending
Consumers’ intent to spend rises despite COVID restrictions
Australians’ intentions to spend have increased during July, despite lockdowns and border restrictions slowing down consumer spending, new research has shown. ...Read more
Spending
How are Australians spending stimulus money?
Australians have received an unprecedented amount of cash amid further government stimulus, new research has revealed. ...Read more
Spending
Buy a pair, give a pair claim costs $3.5m
Eyewear retailer Oscar Wylee has been ordered by the Federal Court to pay $3.5 million in penalties for misleading or deceptive conduct and making or misleading representations about its charitable do...Read more
Spending
Single mums can afford the basics due to pandemic: report
Australian single mothers are no longer skipping meals to feed their children, being forced to wear the poorest clothing or having to steal nappies as changes to social benefits due to the COVID-19 p...Read more
Spending
Why the iron price boom means you pay more for an iPhone
A strong Australian dollar spurred on by the high price of iron ore means Australians are now paying more for an iPhone relative to 12 months ago, new research has shown. ...Read more
Spending
Buy now, troubles later?
Almost one in three people who use buy now, pay later services is finding themselves in financial trouble, new research has found. ...Read more
Spending
Consumers push for locally made products
Australians are increasingly supporting locally produced products as the COVID-19 pandemic revealed weaknesses in the Australian economy as well as an over-reliance on foreign trading partners, accord...Read more
Spending
Petrol prices tumble but record gross margins mean you pay more
The average petrol price in the June quarter fell to its lowest level in 21 years in real inflation-adjusted terms as a result of the recent lockdowns and geopolitical tensions, but gross retail margi...Read more
Spending
Consumers’ intent to spend rises despite COVID restrictions
Australians’ intentions to spend have increased during July, despite lockdowns and border restrictions slowing down consumer spending, new research has shown. ...Read more
Spending
How are Australians spending stimulus money?
Australians have received an unprecedented amount of cash amid further government stimulus, new research has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
