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Tuesday 17 May 2016

16-147MR ASIC accepts enforceable undertaking from Victorian financial adviser to withdraw from financial services for three years

ASIC has accepted an enforceable undertaking (EU) from Michael Melamed, a former authorised representative of Synchronised Business Service Pty Ltd .

The EU follows an ASIC review of the advice provided by Mr Melamed as part of ASIC's review of life insurance advice.

ASIC has concerns that Mr Melamed’s advice about life insurance during the period March 2013 to  January 2015 did not meet the standards required of a financial adviser and that he had failed to comply with financial services laws.

In particular, ASIC has concerns that Mr Melamed:

  • failed to maintain accurate records relating to the provision of financial product advice;
  • failed to make reasonable inquiries or otherwise into his clients' relevant objectives, financial situation and needs;
  • failed to conduct a needs analysis to determine if the amount of insurance cover sought was in his clients'  best interests;
  • recommended insurance cover where clients were unable to afford insurance premiums; and
  • failed to demonstrate the ability, professional skills and knowledge required to competently provide financial services.  

Mr Melamed acknowledges that ASIC's concerns about his advice are reasonably held.

Under the EU, Mr Melamed undertakes that he will not provide financial services on behalf of himself or any other person, for a period of three years. Should Mr Melamed seek re-entry to the financial services industry after the three year period, he must notify ASIC and first undergo prescribed additional training in the provision of financial product advice.

Mr Melamed's exclusion from the financial services industry will be noted in the Financial Advisers Register.


Other outcomes following ASIC’s review of life insurance advice (see Report 413 Review of retail life insurance advice) include:

  • in January 2016, Jason Churchill entered into an Enforceable Undertaking with ASIC based on matters identified in the course of an ASIC surveillance including a review of the client files of Mr Churchill (refer: 16-008MR)
  • 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), and
  • in January 2015, ASIC imposed conditions on the AFS licence of Suncorp-owned Guardian Advice (refer: 15-003MR).
Last updated: 17/05/2016 12:00