ASIC has banned Michael Kolody, a former financial adviser of Morwell, Victoria from providing financial services for five years and six months.

ASIC found Mr Kolody was not adequately trained or competent to provide financial advice and had failed to comply with the financial services laws.

Mr Kolody’s misconduct occurred between July 2010 and January 2014 when he was an authorised representative of Madison Financial Group Pty Ltd.

An ASIC review of client files found Mr Kolody:

• provided advice to a number of clients that was not appropriate to their personal circumstances;
• prepared documents that may have mislead clients about their legal entitlements;
• failed to maintain adequate records of his advice or provide clients with a Statement of Advice that adequately set out the basis on which his advice was given;
• did not provide appropriate replacement product advice and disclosure when advising clients to move from one financial product to another;
• provided inadequate information on some commissions he received.

ASIC Deputy Chairman Peter Kell said, ‘Mr Kolody’s conduct demonstrates a clear failure to protect the interests of his clients. Financial advisers must provide appropriate advice, and they must keep adequate records that set out the basis on which the advice is given.’

Mr Kolody has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

Background

Mr Kolody provided personal financial advice and made recommendations to retail clients on financial products including superannuation and shares.

Mr Kolody has not been in the industry since March 2014.