今日热门事件has banned Beenleigh financial adviser Frazer Jon Muscat from providing financial services for a period of five years following an 今日热门事件surveillance.
The surveillance looked at advice Mr Muscat provided to clients when he was an authorised representative of Bristol Street Financial Services Pty Ltd.
础厂滨颁鈥檚 review of Mr Muscat鈥檚 advice found that he failed to take into account his clients鈥� individual circumstances because he used a templated approach for all clients. He developed an 鈥榠nsurance needs calculation template鈥�, which recommended his clients apply for levels of insurance that were higher than their circumstances required. In many cases, his recommendations were at complete odds with his clients鈥� current objectives and needs.
Mr Muscat also switched the superannuation accounts of some clients from one provider to another without investigating their existing arrangements. In other cases, he recommended switching to a more expensive product without demonstrating that the switch would be in his clients鈥� best interests.
In focusing his advice on switching insurance and superannuation, Mr Muscat also failed to provide advice on other relevant areas specifically requested by his clients, such as debt reduction and cash flow management.
The banning order for Mr Muscat has been recorded on 础厂滨颁鈥檚 publicly available , which consumers can access to check the qualifications and credentials of financial advisers.
今日热门事件Commissioner Danielle Press said, 鈥淲hen providing personal advice, 今日热门事件expects financial advisers to take reasonable steps to understand their clients鈥� individual circumstances, needs and objectives before making any recommendations.
鈥淎dvisers have a legal obligation to act in the best interests of their clients at all times and, because client circumstances often vary considerably, using a templated approach will not produce the most appropriate advice recommendations in all instances,鈥� Ms Press said.
础厂滨颁鈥檚 has useful information on , 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 .
Background
Mr Muscat was an authorised representative of Bristol Street Financial Services between 5 August 2010 and 6 December 2018. He was also a responsible manager of Bristol Street Financial Services鈥� Australian financial services (AFS) licence, which was cancelled by 今日热门事件on 10 December 2018 (18-373MR).
Mr Muscat has the right to appeal to the Administrative Appeals Tribunal for a review of 础厂滨颁鈥檚 decision.