A Sydney-based financial planning business has had its licence suspended for three months and a Victorian broker has been banned from providing financial services.
The Australian Securities and Investments Commission (ASIC) this week suspended the Australian financial services (AFS) licence of Australian Performance Financial Planning until July 1, 2012 because it has been put under the control of an external administrator.
Australian Performance Financial Planning (APFP) is a financial planning business that provides financial advice for clients with self-managed super funds or similar investments and income protection and life insurance policies.
An external administrator was appointed to Australian Performance Financial Planning in February.
ASIC will review the suspension within the three month period.
The watchdog has also permanently banned a former insurance broker from providing financial services.
Between August 2009 and July 2010, Alan Charstone, of Croydon South in Victoria, was an authorised representative of Insurance Advisernet Australia (IAA).
ASIC’s investigation found Charstone engaged in dishonest and deceptive conduct in relation to business and personal insurance.
Specifically, he failed to place adequate insurance cover for clients and misappropriated client funds.
According to an initial report prepared by IAA, the conduct involved 54 clients and cost IAA a total of $58,803.68 to reinstate and/or place insurance cover for each client.
The regulator banned Charstone after finding that he had not complied with financial services laws and that there was reason to believe he would not comply with financial services law in the future.
“It’s important brokers in the insurance industry act with honesty and integrity as they are entrusted to help consumers and small businesses make important financial decisions. Having no insurance cover or inadequate insurance cover can have a devastating impact on consumers or small businesses if something goes wrong”, ASIC commissioner, Peter Kell, said in a statement.
Insurance Advisernet Australia, which cooperated with ASIC during the investigation, has recovered $9000 from Charstone.
Charstone has agreed to repay to IAA, among other costs, the amount of $12,489.51 on account of funds misappropriated by him and as a contribution towards restitution owing to IAA.
ASIC commenced an investigation after it received a breach notification from IAA.
