Qld financial advisor banned
ASIC has banned Queensland-based adviser Gregory Forster from providing financial services for a period of five years.
The Australian Securities and Investments Commission said its "surveillance" had found his had been providing inappropriate advice to clients and failing to act in their best interests int wo roles from July 2012 until December last year.
ASIC said its surveillance looked at advice Forster provided to clients while he was an authorised representative of Breakaway Finance Group and ANZ-owned Millenium 3.
It said Forster had failed to take into account his clients' actual circumstances when providing advice and instead he obtained limited information and made a series of assumptions about their personal circumstances.
Furthermore, he recommended new superannuation and insurance products to his clients without considering their existing products and services.
"In many cases, Mr Forster recommended insurance where the premiums were unaffordable. Even though the premiums were paid out of his clients' superannuation, sometimes they were significantly more than his clients' normal superannuation contributions, potentially leading to erosion of the clients' superannuation balance," ASIC said in a statement.
Forster had also significantly understated the costs associated with implementation of his advice, particularly costs associated with running a self-managed super fund.
ASIC said the ban was part of its Wealth Management Project, which focuses on the conduct of Australia's largest financial advice licensees - NAB, Westpac, CBA, ANZ, Macquarie and AMP.
"As part of its Wealth Management Project, ASIC has banned 53 advisers and one director from the financial services industry. Five bans are the subject of appeals," ASIC said.