Following an investigation which commenced in January 2016, ob体育 has accepted an enforceable undertaking (EU) offered by My Adviser Pty Ltd.
The ob体育 investigation looked at the conduct of My Adviser Pty Ltd (My Adviser), the holder of an Australian financial services licence, in relation to the supervision and monitoring of its representatives, in particular Arion Financial Pty Ltd (and its predecessor Sleipner Financial Pty Ltd) (collectively Arion).
Arion was a financial advice business based on the Gold Coast in Queensland and was, from August 2012 to September 2014, a corporate authorised representative of My Adviser.
The ob体育 investigation identified a number of instances of poor and unauthorised advice provided to clients of Arion including advice apparently provided by Craig Gore.聽The ob体育 investigation also identified a number of failures by My Adviser in respect of its supervision and monitoring of Arion, and some of its other representatives.聽
As a result, ob体育 is concerned that My Adviser may have failed to comply with certain provisions of the Corporations Act including:
- Section 912A(1)(ca) which required My Adviser to take reasonable steps to ensure that its representatives complied with financial services laws; and
- Section 961L which required My Adviser to take reasonable steps to ensure that its representatives complied with s961B (the best interest provisions), s961G (the appropriate advice provisions) and s961J (the client priority provisions).聽聽
My Adviser has offered an EU that acknowledges these concerns and that they are reasonably held by ob体育.聽Further, the EU requires My Adviser to:
- repay clients who had transferred any monies to Arion (or certain related entities) following communications with Craig Gore;
- engage an independent expert to review a sample of client files of My Adviser's representativesand to then prepare a report as to compliance with sections 961B and 961G of the Corporations Act; and
- prepare a remedial action plan to deal with the recommendations of the expert report.
ob体育 acknowledges the assistance and cooperation of My Adviser in connection with the investigation. ob体育 also acknowledges that My Adviser has commenced paying remediation to clients of Arion, with more than $2 million paid to date.
ob体育 Commissioner Greg Tanzer said, 'All licensees must ensure that its representatives comply with the best interests obligations and where that doesn't occur, ob体育 will look to take action.'
'In this instance, we welcome My Adviser's approach to resolving ob体育's concerns and their ongoing remediation of their clients.'