ASIC slaps 3-year ban on financial adviser Sam Henderson
ASIC has slapped a three-year ban on Sydney-based financial adviser, Sam Henderson, after he “failed to act in the best interests of his clients”.
Sydney-based financial adviser, Sam Maxwell Henderson, has been banned from providing financial services for a period of three years following an ASIC surveillance.
Mr Henderson was an authorised representative, responsible manager, director and chief executive of Australian Financial Services (AFS) Licensee Henderson Maxwell.
ASIC found that Mr Henderson had failed to act in the best interests of his clients, provide appropriate advice and to prioritise his clients’ interests when providing personal financial advice. This led to clients either losing money or being at risk of losing money, ASIC found.
In one example given by the regulator, Mr Henderson failed to adequately investigate and assess his clients’ existing deferred benefit superannuation products, which led to a financial loss of several thousand dollars.
Another client, who did not roll over their deferred benefit, would have incurred a $500,000 loss had they implemented Mr Henderson’s advice.
ASIC also found that Mr Henderson did not properly document or investigate his clients’ existing products, failed to provide advice that was relevant to their specific goals and recommended the use of in-house Henderson Maxwell products without providing product comparisons or justifying why the in-house products were better than his clients’ existing products.
The regulator added that as director and responsible manager, Mr Henderson was also involved in Henderson Maxwell breaching its obligation as an AFS licensee to disclose information about relationships or associations that could influence the financial advice provided.
“Financial advisers are required by law to act in the best interests of their clients and prioritise clients’ interests over their own when providing personal advice. They must make every effort to adequately consider their clients’ personal circumstances, needs and goals before providing advice,” ASIC commissioner Danielle Press said.
“AFS licensees are responsible for ensuring that they disclose any associations that could potentially influence the financial advice they provide.”
ASIC’s investigation into Mr Henderson’s conduct is continuing.