Financial adviser banned for five years

ASIC has banned financial adviser Peter Jianchao Xu from providing financial services for five years following a surveillance of his advice.

Xu was an authorised representative of Westpac Banking Corporation, Commonwealth Financial Planning Limited and most recently, Neo Financial Solutions Pty Ltd.

ASIC found that Xu repeatedly recommended clients take out a new insurance policy instead of exploring whether it would be beneficial if they remained with or modified their existing policies.

ASIC also found an ongoing failure by Xu to consider his clients’ personal circumstances when providing personal insurance advice. As a result, his recommendations are likely to have exposed his clients to the risk of being under-insured.

The banning of Xu is part of ASIC’s ongoing efforts to improve standards across the financial services industry. It will be recorded on ASIC’s publicly available Financial Advisers Register and the Banned and Disqualified Persons Register.

The banning of Peter Jianchao Xu falls within ASIC’s Wealth Management Major Financial Institutions Portfolio that focuses on the financial services conduct of Australia’s largest financial institutions (NAB, Westpac, CBA, ANZ, Macquarie and AMP) with respect to credit and retail lending, financial advice, fees for no service, superannuation trustees, insurance, unfair contract terms and other licensee obligations, and other conduct arising from the Financial Services Royal Commission.

As part of its Wealth Management Portfolio, ASIC has banned 62 advisers and three directors from the financial services industry.