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Friday 29 November 2019

19-329MR ASIC bans South Australian adviser for five years

ASIC has banned financial adviser Wendy Chapman from providing financial services for five years.

This follows an ASIC surveillance of Ms Chapman’s advice while an authorised representative of National Australia Bank Limited and Key Financial Planners Pty Ltd.

ASIC found that Ms Chapman failed to gather relevant client information when providing personal financial product advice, including assessments of products that might achieve clients’ objectives and needs. Ms Chapman also failed to assess affordability and explore the consequences of replacing existing products.

ASIC also found that Ms Chapman backdated advice documents to give the impression to her licensees that she had complied with her obligations under the law.

ASIC Commissioner Danielle Press said, 'Advisers must act with integrity and comply with the law when providing personal advice to clients. Any adviser taking short cuts or backdating documentation can expect serious consequences. Consumers should be able to feel confident that the financial advice they are receiving is in their best interests.’

The banning of Ms Chapman is part of ASIC’s ongoing efforts to improve standards across the financial services industry. It will be recorded on ASIC's publicly available Financial Advisers Register and the Banned and Disqualified Persons Register.

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

ASIC's MoneySmart website has useful information for consumers about choosing a financial adviser, about how to complain about a financial adviser and about what to do if their adviser is banned.

ASIC’s action against Wendy Chapman falls within ASIC's Wealth Management Major Financial Institutions Portfolio. The Portfolio focuses on the financial services conduct of Australia's largest financial institutions (NAB, Westpac, CBA, ANZ, Macquarie and AMP) with respect to credit and retail lending, financial advice, fees for no service, superannuation trustees, insurance, unfair contract terms and other licensee obligations, and other conduct arising from the Financial Services Royal Commission.

As part of its Wealth Management Portfolio, ASIC has banned 63 advisers and three directors from the financial services industry. Four bannings are the subject of appeal.

Last updated: 29/11/2019 11:03