An adviser formerly working under CBA-owned licensee Financial Wisdom has been banned for three years by ASIC.
ASIC said the decision came about because Julie Hamilton failed to act in her clients' best interests; the regulator investigated her activity while she was an authorised representative of both Financial Wisdom and Dover.
Specifically, ASIC said Hamilton failed to "make enquiries into her clients' financial circumstances when recommending switching their superannuation and insurance, consider her clients' circumstances when providing advice on superannuation and insurance, give priority to the interests of her clients when providing advice and disclose fees and charges associated with the implementation of her advice."
Hamilton's banning follows ASIC banning a Centrepoint Alliance representative for three years last week. Ramana Rao of Metaplanners in South Australia was banned from providing financial services after it was found he advised a client to obtain financial assistance by withdrawing funds from their self-managed superannuation fund when not permitted to under the Superannuation Industry (Supervision) Act 1993 or the SMSF's trust deed.
He was also found to have recommended another client to use funds from his SMSF to provide a business loan to Rao, despite knowing that such an investment was not in the client's best interests. As such, it was determined that Rao failed to prioritise the interests of his client over his own.
Further, in both cases Rao failed to provide the clients with a Statement of Advice.
In response, Centrepoint Alliance said it has fully co-operated with ASIC in its investigation into Rao.
"Due diligence was given when addressing the initial complaint against Rao, therefore Centrepoint Alliance was able to pick up and report concerns to ASIC regarding Rao assisting clients in accessing their superannuation prior to meeting a condition of release," a statement read.