ASIC has banned Beenleigh financial adviser Frazer Jon Muscat from providing financial services for a period of five years following an ASIC surveillance.
The surveillance looked at advice Muscat provided to clients when he was an authorised representative of Bristol Street Financial Services Pty Ltd.
The regulator’s review of his advice found that he failed to take into account his clients’ individual circumstances because he used a templated approach for all clients. He developed an ‘insurance needs calculation template’, which recommended his clients apply for levels of insurance that were higher than their circumstances required. In many cases, his recommendations were at complete odds with his clients’ current objectives and needs.
The banning order for Muscat has been recorded on ASIC’s publicly available Financial Advisers Register, which consumers can access to check the qualifications and credentials of financial advisers.
ASIC Commissioner Danielle Press said, “When providing personal advice, ASIC expects financial advisers to take reasonable steps to understand their clients’ individual circumstances, needs and objectives before making any recommendations.
“Advisers have a legal obligation to act in the best interests of their clients at all times and, because client circumstances often vary considerably, using a templated approach will not produce the most appropriate advice recommendations in all instances,” Press stated.