ASIC has banned Beenleigh-based Ian Victor Haisman from providing financial services for a period of seven years. This follows an ASIC surveillance, which found that Mr Haisman failed to act in the best interests of his clients.
The surveillance looked at advice provided by Mr Haisman to clients from early 2016 to early 2018 when he was an authorised representative of Bristol Street Financial Services Pty Ltd.
A review of a number of Mr Haisman’s advice files revealed that the advice he provided was not tailored to his clients’ individual circumstances, needs and financial goals. When recommending an investment strategy which involved product switching, he did not adequately investigate his clients’ existing superannuation and insurance arrangements or provide product cost and risk comparisons. Instead, he used templated strategies and made recommendations that were applied regardless of his clients’ personal circumstances.
In some instances, Mr Haisman provided inappropriate advice by recommending very high levels of insurance cover compared to the clients’ income or by recommending life insurance policies to clients with no known dependants and no reasonable basis for the policies. ASIC also found that Mr Haisman failed to provide statements of advice that were clear, concise and effective to all his clients.
ASIC Commissioner Danielle Press said, ‘Financial advisers providing personal advice are required by law to act in the best interests of their clients.
‘ASIC expects advisers to take into account their clients’ personal circumstances, needs and financial goals to ensure that the advice they provide is appropriate. Failing to do so clearly indicates a lack of regard for the law and for the interests of clients,’ Ms Press said.
Mr Haisman has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision. The banning order for Mr Haisman has been recorded on ASIC’s publicly available Financial Advisers Register, which consumers can access to check the qualifications and credentials of financial advisers.
ASIC’s MoneySmart website has useful information on life insurance, including a calculator to help consumers work out whether they need life cover and what level of cover is appropriate. The website also has information about what to do if their adviser has been banned.
Background
Mr Haisman was an authorised representative of Bristol Street Financial Services between 10 April 2010 to 6 December 2018. He was also a director and responsible manager of Bristol Street Financial Services’ Australian financial services (AFS) licence, which was cancelled by ASIC on 6 December 2018 (18-373MR).