The corporate regulator has announced it will cancel the AFSL of Austplan effective from 25 November following an agreement with the licensee.
ASIC noted concerns about Austplan’s ability to do all things necessary to ensure the advice provided by its representatives was compliant.
It said its surveillance found deficiencies in the financial services provided by a number of Austplan representatives, including their failure to act in the best interest of their clients in relation to establishing self-managed superannuation funds (SMSF).
As part of the cancellation, Austplan is required to comply with conditions such as maintaining its current professional indemnity insurance policy until the cancellation takes effect and its membership of Australian Financial Complaints Authority (AFCA) until all consumer complaints have been resolved, ASIC said.
Austplan will also have to submit the required financial statements with ASIC and retain all materials relating to personal advice provided by its representatives. ASIC said it is continuing to make inquiries in relation to the advice provided.
Further, Austplan also received client referrals from GM Homes, a building and mortgage business, which is not licensed to provide financial advice or any other financial service.
“AFS licensees have an obligation to ensure that their representatives are adequately trained and competent to provide financial services that are in their clients’ best interest,” said ASIC deputy chair Peter Kell.
“ASIC will take action where we see licensees not properly supervising their representatives.
“SMSFs are not right for everyone. We encourage consumers to think carefully about investing in property and do their research before they set up an SMSF.”
Eliot Hastie is a journalist at Momentum Media, writing primarily for its wealth and financial services platforms.
Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.
Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).
You can email him on: [email protected]
An Australian investment manager has tipped that as pandemic volatility is expected to force a 30 per cent reduction in dividends, active ma...
Morningstar analysts have forecast a “troubling” outlook for the banks ahead, expecting the rise of unemployment and business closures w...
One of the world’s largest investment banks has warned that emerging market economies have the most to lose in the outbreak. ...