ASIC bans another financial adviser

The corporate regulator bans another financial adviser for not meeting legal obligations to clients.

The surveillance found Mr O’Brien failed to make sufficient inquiries into his clients’ circumstances.

A financial adviser who previously worked for AMP and NAB has been banned for four years by the corporate watchdog as it works to clean up the financial services industry.

The Australian Securities and Investments Commission said in a statement on Wednesday that David O’Brien, who is based in northern NSW, would no longer be approved to give financial advice after the watchdog’s surveillance found he failed to meet legal obligations as an adviser.

Mr O’Brien most recently worked at NAB-owned GWM Adviser Services Limited and was previously an authorised representative of AMP-owned Charter Financial Planning Limited.

The surveillance found Mr O’Brien failed to make sufficient inquiries into his clients’ circumstances; conduct reasonable investigations into their existing financial products; and provide advice based on clients’ personal circumstances.

ASIC found that when providing superannuation advice, Mr O’Brien made no inquiries into matters such as costs, investment strategy or whether his clients had any insurance in place with their existing superannuation arrangements.

“When providing insurance advice, Mr O’Brien failed to prepare a needs analysis or objectively assess what level of insurance cover would achieve his clients’ needs,” ASIC said.

“One of Mr O’Brien’s clients had their cover declined for pre-existing medical conditions after their existing insurance had been cancelled, leaving them uninsured.”

Mr O’Brien’s expulsion follows a slew of bans by the corporate regulator following the Hayne royal commission into financial misconduct, with 64 advisers and three directors barred from the industry.

Mr O’Brien has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.