ASIC has accepted an enforceable undertaking from a former Commonwealth Financial Planning Limited (CFP) employee after he failed to meet various obligations as a financial adviser.
The action follows an investigation into the advice provided by Simon Langton and several other CFP financial advisers, part of which is ongoing.
CFP is a wholly owned subsidiary of the Commonwealth Bank of Australia (CBA) and operates under the advice structure of Colonial First State, which is also part of the CBA.
The regulator found that between April 7, 2008, and June 23, 2010, Langton, of Mindarie, Western Australia, had: failed to complete financial needs analysis documentation; allowed clients to sign blank financial needs analysis documentation; failed to make reasonable inquiries in relation to the personal circumstances of clients before implementing advice; failed to provide clients with statements of advice (SoAs); failed to provide SoAs within a reasonable time period; and failed to disclose fees in an SoA provided to a client.
Under the enforceable undertaking, Langton has agreed not to provide financial services in any capacity for a minimum of two years.
He has also undertaken to complete appropriate professional education requirements and must adhere to strict supervision requirements for 12 months should he decide to re-enter the financial services industry.
On 25 October 2011, ASIC accepted an enforceable undertaking from CFP requiring it to conduct a comprehensive review of its risk management framework and develop a plan to address any deficiencies.
Former clients of Langton or clients of other CFP advisers who feel they may be entitled to claim compensation should contact CFP directly.
ASIC’s investigations into the conduct of several other CFP advisers is ongoing.
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