Sydney-based financial adviser, Sam Maxwell Henderson, has been banned from providing financial services for a period of three years following an ob体育 surveillance.听
Mr Henderson was an authorised representative, responsible manager, director and Chief Executive of Australian financial services (AFS) licensee Henderson Maxwell Pty Ltd (Henderson Maxwell).听
ob体育 found that Mr Henderson had failed to act in the best interests of his clients, provide appropriate advice and to prioritise his clients鈥� interests when providing personal financial advice. This led to clients either losing money or being at risk of losing money.听
In one example, Mr Henderson failed to adequately investigate and assess his clients鈥� existing deferred benefit superannuation products. This resulted in a financial loss of several thousand dollars to one client when they rolled over their deferred benefit. Another client, who did not roll over their deferred benefit, would have incurred a $500,000 loss had they implemented Mr Henderson鈥檚 advice.听
ob体育 also found that Mr Henderson did not properly document or investigate his clients鈥� existing products, failed to provide advice that was relevant to their specific goals and recommended the use of in-house Henderson Maxwell products without providing product comparisons or justifying why the in-house products were better than his clients鈥� existing products.听
Mr Henderson, as director and responsible manager, was also involved in Henderson Maxwell breaching its obligation as an AFS licensee to disclose information about relationships or associations that could influence the financial advice provided.听
This breach came about because, in 2013, Mr Henderson鈥檚 self-managed superannuation fund invested in Managed Account Holdings Limited (MAHL). A subsidiary of MAHL provided managed discretionary account services to Henderson Maxwell. Henderson Maxwell had failed to disclose this interest in two Financial Services Guides given to clients.听
ob体育 Commissioner Danielle Press said, 鈥楩inancial advisers are required by law to act in the best interests of their clients and prioritise clients鈥� interests over their own when providing personal advice. They must make every effort to adequately consider their clients鈥� personal circumstances, needs and goals before providing advice.听
鈥業f providing advice about product switching or recommending in-house products, we expect advisers to demonstrate how their clients鈥� interests are being prioritised, especially if in-house products have higher ongoing fees. AFS licensees are responsible for ensuring that they disclose any associations that could potentially influence the financial advice they provide.听
鈥榦b体育 is committed to taking action against financial advisers and AFS licensees who do not comply with financial services laws and engage in conduct resulting in financial loss to consumers,鈥� Ms Press said.听
The banning of Mr Henderson is part of ob体育鈥檚 ongoing efforts to improve standards across the financial services industry. Mr Henderson鈥檚 banning will be recorded on ob体育鈥檚 publicly available and Banned and Disqualified Register.听
ob体育鈥檚 investigation into Mr Henderson鈥檚 conduct is continuing.
ob体育's MoneySmart website has useful information for consumers about , including how to complain about a financial adviser and what to do if their .
叠补肠办驳谤辞耻苍诲听
Mr Sam Henderson was an authorised representative of Henderson Maxwell from 30 May 2008 to 4 June 2018.听
Mr Henderson announced his retirement from the financial planning industry in June 2018 and is listed as 鈥楥eased鈥� on the Financial Advisers Register.听
Mr Henderson has the right to appeal to the Administrative Appeals Tribunal for a review of ob体育鈥檚 decision.