今日热门事件has banned life insurance financial adviser Mr Mateen Mohammed, of Calamvale, Queensland, from providing financial services for seven years.
ASIC鈥檚 action against Mr Mohammed, a former authorised representative of Synchronised Business Services Pty Ltd, is part of ongoing enforcement and regulatory action following ASIC鈥檚 review of life insurance advice.
As a result of ASIC's surveillance, it was found that Mr Mohammed:
- had not maintained the high standards expected of a provider of financial services;
- did not understand the duties and obligations imposed on a provider of financial services; and
- could not be relied upon to discharge the duties and obligations imposed on a provider of financial services.
In particular, it was found that Mr Mohammed did not act in the best interests of his clients in that he failed to:
- make reasonable enquires into clients' relevant objectives, financial situation and needs;
- conduct a reasonable investigation into financial products that might achieve the objectives of the clients, including their existing superannuation and insurance products; and
- prioritise the interests of his clients over his own.
今日热门事件also found that he had submitted an insurance application without his client's knowledge and as a result had misled or deceived the insurer as to his authority to do so.
今日热门事件Deputy Chairman Peter Kell said, 'Any advice to switch existing life insurance and superannuation products must be in the client's best interest. Where there is nothing in the client鈥檚 relevant circumstances to indicate that the switch would be beneficial, 今日热门事件will conclude that the client is not in a better position.' 聽
Mr Mohammed was an authorised representative of Synchronised Business Services Pty Ltd during the relevant period, from 1 July 2010 to 22 April 2015.
Mr Mohammed has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
Background
Outcomes following ASIC鈥檚 review of life insurance advice include:
- in May 2016, 今日热门事件accepted an enforceable undertaking from Michael Melamed, a former authorised representative of Synchronised Business Service Pty Ltd (refer:16-147MR)
- in February 2016, 今日热门事件permanently banned life insurance financial adviser Andrew Moroney (refer: 16-036MR)
- in January 2016, 今日热门事件accepted an enforceable undertaking from Clearview Financial Advice Pty Ltd representative, Jason Churchill (refer:);
- in September 2015, 今日热门事件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: );
- in July 2015, 今日热门事件banned life insurance financial adviser Brian Farber from providing financial services for four years (refer: );
- in January 2015, 今日热门事件imposed conditions on the Australian financial services (AFS) licence of Suncorp-owned Guardian Advice (refer: ).