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Tuesday 19 January 2016

16-008MR ASIC accepts enforceable undertaking from Queensland financial adviser

ASIC has accepted an enforceable undertaking (EU) from ClearView Financial Advice Pty Ltd representative, Jason Churchill, after he failed to meet his obligations as a financial adviser.

Mr Churchill traded as Churchill Consulting Services Pty Ltd in Carrara, Queensland.

The EU follows an ASIC review of the advice provided by Mr Churchill.

ASIC found Mr Churchill’s advice relating to the replacement of personal insurances did not meet the standards expected of a financial adviser and that he had failed to comply with financial services laws.

An ASIC review of client files found in some instances Mr Churchill had:

  • failed to undertake adequate inquiries into the relevant personal circumstances of some clients to whom he made recommendations
  • failed in some instances to provide adequate replacement product advice to the client in the Statement of Advice, preventing the client from making an informed decision to switch insurance cover
  • inadequately demonstrated in some cases the benefits of a stepped or level premium
  • failed in some cases to consider the competing priorities of adequate insurance versus affordability, including the longer term impact of placing insurances within superannuation
  • limited the advice in some cases to exclude issues which cannot reasonably be excluded from the scope of advice.

Under the EU, Mr Churchill has agreed to undergo additional training in relation to the provision of financial product advice and must adhere to strict supervision requirements for 12 months and have each piece of advice audited by his authorising licensee before it is provided to the clients.

Download the enforceable undertaking

Background

Outcomes following ASIC’s review of life insurance advice include:

  • In September 2015 ASIC banned life insurance financial adviser and former authorised representative Lukas Zelka of Neo Financial Solutions Pty Ltd from providing financial services for three years (refer: 15-269MR).
  • In July 2015 ASIC banned life insurance financial adviser Brian Farber from providing financial services for four years (refer: 15-178MR).
  • In January 2015 ASIC imposed conditions on the Australian financial services (AFS) licence of Suncorp-owned Guardian Advice (refer: 15-003MR).

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Last updated: 23/03/2016 03:05