ASIC has accepted enforceable undertakings (EU) from two Queensland financial advisers following concerns over their compliance with financial services laws.
The outcome is part of ASIC’s Wealth Management Project which is targeting compliance in the four major banks, Macquarie and AMP (refer: 15-081MR).
Reid Menkens is a former Millennium3 Financial Services Pty Ltd and AMP Financial Planning Pty Ltd representative and Leo Menkens is a former AMP representative. The pair trade as Menkens Financial Group in Brisbane, Queensland.
An ASIC review of client files found failures by both father and son to:
- demonstrate that they had acted in the best interests of their clients
- keep proper records, and
- provide statements of advice (SOA) in a timely manner
Under the EUs, the pair must appoint an independent consultant to undertake a program of pre-vet and audit reviews to test the compliance of advice prepared by the pair. The consultant will report to ASIC and the Menkens’ current financial services licensee, Austplan Pty Ltd, and the pair will be required to address any deficiencies identified by the review.
ASIC Deputy Chairman Peter Kell said, ‘Financial advisers need to ensure their processes and documentation demonstrate that they have acted in the best interests of their clients.’
Background
Since ASIC’s Wealth Management Project started in October 2014, in addition to the EUs entered into with the Menkens, ASIC has also banned the following advisers from the financial services industry:
Martin Hodgetts (refer: 15-218MR)
Shawn Hickman (refer: 15-213MR)
Brett O’Malley (refer: 15-121MR)
Brian Farber (refer: 15-178MR), and
Rebecca Locksley (refer: 15-070MR)