ASIC has banned a Queensland-based financial adviser for five years after the licensee he was working under was cancelled in December last year.
The banning of Beenleigh’s financial adviser, Frazer Jon Muscat, from providing financial services followed surveillance from ASIC.
ASIC’s investigation found that Mr Muscat’s advice failed to take into account his clients’ individual circumstances because he used a templated approach for all clients.
They found that Mr Muscat developed an “insurance needs calculation template”, which recommended his clients apply for levels of insurance that were higher than their circumstances required. In many cases, his recommendations were at complete odds with what the clients needed.
ASIC commissioner Danielle Press has reiterated that financial advisers have an obligation to act in the best interests of clients.
“When providing personal advice, ASIC expects financial advisers to take reasonable steps to understand their clients’ individual circumstances, needs and objectives before making any recommendations,” said Ms Press.
“Advisers have a legal obligation to act in the best interests of their clients at all times and, because client circumstances often vary considerably, using a templated approach will not produce the most appropriate advice recommendations in all instances,” continued Ms Press.