ASIC has permanently banned Subeer Luthra from providing financial services and engaging in credit activities because of his dishonest conduct.
Luthra advised his clients to switch their superannuation to a product issued by BT (part of the Westpac Group), and to obtain comprehensive personal insurance, without taking their needs and objectives into consideration. He also recommended BT insurance and superannuation products to all his clients without adequately investigating their existing financial products.
The inappropriate advice resulted in his clients paying excessive insurance premiums that eroded their superannuation contributions at a point in their lives when they did not have enough time to rebuild their assets for retirement.
ASIC found that Luthra is not of good fame or character to provide financial services because his conduct was dishonest and deliberate, and motivated by personal enrichment.
ASIC also determined that he is not a fit and proper person to engage in credit activities. ASIC Commissioner, Danielle Press said, “The failure of financial advisers to act in the best of interests of their clients or to prioritise their clients’ interests over their own erodes public trust in financial services professionals and affects the financial system as whole. Individual advisers have a role to play in rebuilding that trust.
“ASIC expects financial advisers to uphold the values of integrity and professionalism. Conduct that results in harm to consumers will not be tolerated.”