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This week in Penalties...

NAB Manager permanently banned

The Australian Securities and Investments Commission has permanently banned a National Australia Bank (NAB) branch Manager.

According to the statement from the regulator, the conduct under investigation was part of the first case study before the start of the Royal Commission.

The regulator alleges that Matthew Alwan was accepting false documents that support loan applications and falsely claiming that the loans were referred by ‘NAB introducers’ so that they could gain commissions.

According to ASIC:

From 2012 to 2015, Mr. Alwan assigned 101 home loans as being referred to NAB by an introducer, causing a total of $186,725 to be paid to the introducer by way of commission. ASIC found in 25 of these loan applications, Mr. Alwan had knowingly given NAB false or misleading information and documentation.

Adviser gets a 3-year ban

The Australian Securities and Investments Commission (ASIC) indicated that Spectrum Wealth Adviser, Gurumukh Singh Mehra failed to act in his clients' best interest and was not adequately trained to provide financial services.

Failures identified by ASIC:

  • make reasonable inquiries into his clients’ relevant circumstances, such as obtaining existing superannuation and insurance information;

  • adequately investigate the clients’ existing financial products prior to making insurance recommendations;

  • compare the features and costs of any existing insurance with that recommended to clients; and

  • base all judgments on the clients’ relevant circumstances.

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