Suggested Posts

Not of good fame or character

More advisors banned permanently

The Australian Securities and Investments Commission (ASIC) announced the permanent banning of financial advisor, Subeer Luthra, for dishonest conduct.

This latest action is part of the regulator’s attempt to prevent the erosion of public trust in financial service professionals and in the financial system in general.

“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 Commissioner Danielle Press said, in formal statement earlier this week.

According to ASIC, Luthra was not of ‘good fame or character because of his actions’, which the regulator has described as dishonest and deliberate.

Westpac reported Luthra’s misconduct to ASIC, and the regulator’s subsequent investigation found the former financial adviser had advised his clients to buy BT-related superannuation and insurance products and options, without regard to financial products his clients already had.

“ASIC expects financial advisers to uphold the values of integrity and professionalism. Conduct that results in harm to consumers will not be tolerated,” Press said.

From Beaumaris, adviser Graham Davies has also been banned permanently from providing financial services or engaging in credit activities for being “…not of good fame or character.”

According to ASIC, from October to November 2016, the now-banned adviser:

  • back-dated an insurance policy for a factory building after the building had been damaged in a fire;

  • lodged an insurance claim for the damage to the factory building and contents and for a vehicle; and

  • after lodging the insurance claim for the vehicle, added information to the vehicle insurance policy that increased its insured value.

Related Posts

See All
No tags yet.

©2018-2019 by The GRC Institute - Governance, Risk & Compliance.  ABN: 42862119377