Australia's watchdog bans financial adviser

Pedro Gonçalves
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Australia's watchdog bans financial adviser

Australia's corporate regulator has banned a North Queensland financial adviser from providing financial services for four years for failing to comply with the best interests duty.

The watchdog found that Peter Goudie failed to comply with financial services laws including the requirement to comply with the best interests duty and to prioritise his clients' interests.

It followed ASIC surveillance of his activities when he was an authorised representative of Risk and Investment Advisors and National Australia Bank (NAB) owned GWM Adviser Services.

ASIC's decision reflects our expectation that financial advisers comply with the law and act in their client's best interests, not their own interests"

ASIC said that, when providing personal advice, Goudie did not adequately identify his clients' objectives, financial situation and needs or investigate whether the financial products he was recommending would meet their needs. He also failed to give a number of his clients a Statement of Advice (SOA).

Further, in all circumstances where Goudie's advice was not in the best interests of his clients, it was found that he gave priority to generating fees and commissions for himself.

"ASIC's decision reflects our expectation that financial advisers comply with the law and act in their client's best interests, not their own interests," said ASIC commissioner Danielle Press.

"Assessing client needs and providing a clear Statement of Advice are critical parts of the advice process. Advisers must remember that failing to provide the necessary advice documentation to clients is a serious breach of the law."

 

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