Qld adviser banned for three years
A financial adviser who recommended some of his clients invest in a high risk fund related to his licensee has been banned for three years by the Australian Securities and Investments Commission (ASIC).
The regulator said that the Queensland-based adviser, Keith Robert McDermott had been banned for three years following a surveillance of advice which he provided to clients while an authorised representative of FinancialLink Group(TFLG).
ASIC found McDermott recommended some of his clients invest in a high-risk fund, the Investport Income Opportunity Fund (the Fund). The high-risk nature of the investment did not match those clients’ risk profiles.
ASIC said McDermott also recommended that some clients invest a high percentage of their retirement savings in the Fund, magnifying the risks for those clients.
“ASIC identified Mr McDermott failed to provide advice that was appropriate and/or in his clients’ best interests. Mr McDermott’s actions failed to prioritise his clients’ interests ahead of his own and those of his licensee,” the ASIC statement said.
“In addition, Mr McDermott failed to disclose the charges, lost benefits and other significant consequences, including the risks, arising from his recommendation to switch client funds from existing financial products into the Fund.”