A Queensland-based adviser has been slapped with a seven years ban for providing bad advice to his clients by the Australian Securities and Investments Commission (ASIC).
The corporate watchdog said that Ian Victor Haisman had been providing templated advice not tailored to his clients' individual circumstances, needs and financial goals.
"In some instances, Haisman provided inappropriate advice by recommending very high levels of insurance cover compared to the clients' income or by recommending life insurance policies to clients with no known dependants and no reasonable basis for the policies," ASIC said.
Financial advisers providing personal advice are required by law to act in the best interests of their clients"
ASIC's investigation looked at advice provided to clients from early 2016 to early 2018 of Ian Victor Haisman, when he was an authorised representative of Bristol Street Financial Services.
ASIC also found Haisman did not adequately investigate his clients' existing superannuation and insurance arrangement or provide product cost and risk comparisons when recommending an investment strategy which involved product switching.
"Financial advisers providing personal advice are required by law to act in the best interests of their clients," said Danielle Press, ASIC commissioner. "ASIC expects advisers to take into account their clients' personal circumstances, needs, and financial goals to ensure that the advice they provide is appropriate. Failing to do so clearly indicates a lack of regard for the law and for the interests of clients."
He also failed to provide clear, concise and effective statements of advice to his clients. Haisman can challenge the ban in the Administrative Appeal Tribunal.