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Thursday 21 December 2017

17-454MR ASIC accepts enforceable undertakings following advice deficiencies

ASIC has accepted two enforceable undertaking (EUs) arising from deficiencies in the advice provided about insurance products.

Christopher John Cannon

ASIC has accepted an EU from Victorian-based financial adviser, Christopher John Cannon, a director of PAC Financial Pty Ltd and authorised representative of Austplan Pty Ltd, for the advice provided by Mr Cannon to be overseen by an independent expert for three years.

ASIC was concerned that Mr Cannon's advice about insurance products from June 2015 to August 2016 did not meet the standards required of a financial adviser and that he had failed to comply with financial services laws.

In particular, ASIC was concerned that Mr Cannon:

  • failed to act in the best interest of clients in relation to personal advice;
  • advised clients to switch insurance products when it was not appropriate;
  • in some instances, failed to consider all costs, risks, benefits and disadvantages when advising clients to switch from an existing insurance product into a recommended new insurance policy; and
  • used generic Statement of Advice templates when making Financial Product Advice recommendations to clients.

Mr Cannon acknowledge that ASIC's concerns about his advice are reasonably held.

ASIC acknowledges Mr Cannon's cooperation with ASIC through its investigation.

Danny Charles Pianta

ASIC has accepted an EU from Brisbane-based financial adviser, Danny Charles Pianta, a director of PAC Financial Pty Ltd and authorised representative of Austplan Pty Ltd, for the advice provided by Mr Pianta to be overseen by an independent expert for three years.

ASIC was concerned that Mr Pianta's advice about insurance products from June 2015 to August 2016 did not meet the standards required of a financial adviser and that he had failed to comply with financial services laws.

In particular, ASIC was concerned that Mr Pinata:

  • failed to act in the best interest of clients in relation to personal advice;
  • advised clients to switch insurance products when it was not appropriate;
  • in some instances, failed to consider all costs, risks, benefits and disadvantages when advising clients to switch from an existing insurance product into a recommended new insurance policy; and
  • used generic Statement of Advice templates when making Financial Product Advice recommendations to clients. Mr Cannon acknowledge that ASIC's concerns about his advice are reasonably held.

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

ASIC acknowledges Mr Pianta's cooperation with ASIC through its investigation.

Download the enforceable undertakings

Last updated: 21/12/2017 11:30