ASIC has permanently banned a former Guardian Advice representative.
Andrew Moroney worked under the Guardian Advice licence from 2006 to 2014, during which time ASIC alleged he engaged in deliberate "policy churn" - annually recommending clients replace insurance policies so as to receive regular high up-front commissions.
The regulator said that Moroney failed to make "reasonable enquiries" into his clients' circumstances prior to recommending new policies (and didn't enquire into the viability of existing and new policies), lied about having researched alternative policies and "prioritised his own commercial interests ahead of ... the clients."
"Conduct by advisers aimed at maximising commission by replacing insurance policies, without valid reason, is unacceptable," ASIC deputy chair Peter Kell said.
"It puts clients' coverage at risk and drives costs in the sector, which are ultimately borne by consumers. ASIC will remove advisers whose conduct breaches financial services laws and falls short of the standards expected of the industry."
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