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Thursday 24 September 2015

15-269MR ASIC bans life insurance financial adviser

ASIC has banned a life insurance financial adviser and former authorised representative of Neo Financial Solutions Pty Ltd from providing financial services for three years.

ASIC’s action against Lukas Zelka is part of ongoing investigations and enforcement and regulatory action following ASIC’s review of life insurance advice (refer: 14-263MR).

ASIC Deputy Chairman Peter Kell said, ‘ASIC is focused on weeding out advisers who fail to meet industry and community expectations. We want to ensure that consumers seeking life insurance can be confident that their adviser will provide appropriate advice.’

ASIC found Mr Zelka’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 Mr Zelka had:

  • failed to act in the best interest of his clients by not giving adequate consideration to the information he had obtained about their relevant circumstances, including their existing insurance
  • failed to provide appropriate advice
  • failed to have a reasonable basis for advice, and
  • relied excessively on template statements of advice containing prepopulated information, failing to tailor them to the client’s specific circumstances which led to false and misleading statements being made.

All clients who have concerns about the advice they received from Mr Zelka are advised to contact the financial services licensee under which Mr Zelka gave the advice.

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

Background

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

  • 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)
Last updated: 30/03/2021 09:38