Advisers banned by ASIC

ASIC’s promised crackdown on life insurance cons continues apace as two more advisers receive bans against practicing over dishonest conduct.

Abhinav Gupta has been permanently banned from the financial services industry, after ASIC’s investigation found Gupta culpable for issuing a policy in the name of a client without their approval and using one client’s bank account details on another client’s policy without authorisation.

Gupta, a former AR for ACE, was also found to have issued more than 12 fake policies in the names of falsified clients.

Meanwhile, Sydney’s Brian Farber has been suspended from providing financial advice following ASIC’s finding that he was not adequately trained or competent in providing a financial service.

Farber was found to have engaged in misleading conduct in relation to backdating a number of Statements of Advice (SOA), and failed to provide SOAs to clients within the necessary timeframe.

Farber was also found to have relied unduly on template SOAs containing prepopulated information and failed to adequately divulge information concerning product replacement.

He was an authorised representative of Risk Advice Specialists, a subsidiary of the Macquarie Group Limited.

ASIC Deputy Chairman Peter Kell says: “Consumers should be confident that their financial adviser is acting in their best interest.”

“The business model of simply ‘selling’ life insurance without complying with the legal and regulatory obligations will not be tolerated by ASIC and advisers who do so will be removed from the industry,” Kell adds.