Clients of a financial adviser being investigated by the corporate regulator for contravening the law were still being put into Diversa products while the investigation was ongoing.
The corporate regulator has banned and cancelled the licence of a Melbourne adviser who allegedly acted dishonestly while assisting clients to consolidate their super. In a statement, ASIC said it had
ASIC found Bhandari acted dishonestly while assisting consumers to find and consolidate their superannuation and obtain hardship payments.
This had included instances where he told consumers to make false statements to their superannuation fund trustees in order to gain early access to their superannuation balances.
ASIC also found that he and ADG gave personal advice to consumers about their superannuation despite only being authorised to give general advice and failed to comply with the legal obligations required, which included client best interest and providing a statement of advice.
ASIC cancelled ADG’s AFSL, after it found its business model was not designed to comply with its obligation to act efficiently, honestly or fairly when providing financial services. ADG was found to have: