Storm not over at Synchron

Financial services licensee Synchron has expressed surprise at the extent of the enforceable undertaking demanded of one of its advisers by the Australian Securities and Investments Commission.

While it was widely expected that Terence Webb, who is currently on leave, would face a regime of supervision, audit and review due to his previous involvement with Storm Financial, the regulator has expressed further concern with his more recent role as a financial planner licensed through Synchronised Business Services.

Webb represented Storm in a variety of ways from April 2004 until the company was placed in voluntary administration in January 2009. He joined Synchron in July 2010 as an authorised representative with Terry Webb Financial Services.

However, the period subject to ASIC scrutiny is November 2005 to July 2011, leaving Synchron director John Prosser to question why his recent conduct is also under the microscope.

In a statement, the regulator said it “was concerned that, after leaving Storm and continuing to work as a financial planner Mr Webb may not have had a reasonable basis for the advice that he provided, or may have provided incomplete or inaccurate advice to his clients”.

Under the enforceable undertaking, Webb has agreed to complete specified courses of professional development within 12 months. He must also submit to a regime of supervision, audit and review of the financial services he provides to clients by an ASIC-approved, independent senior financial planner for two years.

Prosser confirmed to Professional Planner Online that Synchron has been licensee to a total of four ex-Storm financial advisers with Webb the second to comply with an enforceable undertaking.

In addition, ASIC last year banned the most high profile of the four, Stuart Drummond, of Clayfield in Brisbane, from providing financial services for four years.

Earlier this month, ASIC accepted an enforceable undertaking from James Mousa of Cairns in Queensland, who was previously an authorised representative of Storm.