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
Aussies splash record cash for Black Friday and Cyber Monday
More than $8 billion was spent between the two shopping holidays, according to NAB estimates. ...Read more
Spending
Festive shopping expected to be bigger and earlier than ever
Australians are set to spend $60 billion at retailers across the country. ...Read more
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
Spending
Aussies splash record cash for Black Friday and Cyber Monday
More than $8 billion was spent between the two shopping holidays, according to NAB estimates. ...Read more
Spending
Festive shopping expected to be bigger and earlier than ever
Australians are set to spend $60 billion at retailers across the country. ...Read more
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
