The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking from former Commonwealth Financial Planning (CFP) employee, Joe Chan, in the latest of a series of banning orders.
The regulator found that Chan had failed to meet various obligations as a financial adviser between December 20, 2006 and October 1, 2010.
The order follows an investigation into the advice provided by several of CFP’s financial advisers.
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.
According to ASIC, Chan was the servicing planner for former CFP adviser Don Nguyen, who the industry watchdog had previously banned from providing financial services for seven years.
The regulator found that Chan, of Meadowbank in New South Wales, had falsified classified client files, encouraged clients to purchase insurance by advising them that he would waive the adviser service fee and provided false information in statement-of-advice documents.
As part of the undertaking, Chan has agreed not to provide financial services in any capacity for a minimum of two years.
He must also adhere to strict supervision requirements for six months should he decide to re-enter the financial services industry.
This ruling follows investigations of other former CFP financial advisers, Don Nguyen, Simon Langton, Christopher Baker, Anthony Awkar and Jane Duncan.
On October 25 last year, ASIC accepted an enforceable undertaking from CFP requiring it to review its risk-management framework and address deficiencies.
Former clients of Chan or clients of other CFP advisers who feel they might be entitled to claim compensation should contact CFP directly on 1800 507 281.
