Adviser banned after failing to consider insurance cover

Adviser banned after failing to consider insurance cover | Insurance Business Australia

Adviser banned after failing to consider insurance cover

The Australian Securities and Investment Commission (ASIC) has banned Hobart-based financial adviser Hannah Jennings from providing financial services, carrying on a financial services business, and controlling an entity that carries on a financial services business for four years after finding she failed to act in the best interests of her clients.

ASIC alleges that Jennings had been providing advice that was inappropriate in light of her clients’ relevant personal circumstances, recommending that they should continue with double gearing strategies despite knowing that they struggled to service borrowing arrangements.

The financial regulator found that Jennings failed to keep proper records, consider an exit strategy for her clients, and secure appropriate personal insurance cover.

ASIC stated that the adviser’s actions showed no regard for her clients’ relevant personal circumstances, cash flow position, and ability to cover margin calls. It also claimed that Jennings was not adequately trained or competent to provide financial services, with her lack of understanding about her legal and professional obligations as a financial adviser creating additional risks to her current and future clients.

Read more: ASIC issues permanent ban to former Reliance Group director

Jennings has been a financial adviser since 2009 and has been authorised by several AFS licensees. She is the sole director and only authorised financial adviser of FF Planning Solutions Pty Ltd, previously known as Fort Financial Group Pty Ltd (Fort Financial), an authorised representative of InterPrac Financial Planning Pty Ltd since March 2017.

The alleged misconduct that resulted in her ban occurred when Jennings was an authorised representative of Meritum Financial Group Pty Ltd (February 2012 to February 2017) and InterPrac Financial Planning Pty Ltd. 

The ban took effect on April 01, 2021, as part of ASIC’s ongoing efforts to improve standards across the financial services industry. It has been recorded on the financial regulator’s publicly available Financial Advisers Register and the Banned and Disqualified Persons Register.

Jennings applied to the AAT to review ASIC’s decision but withdrew her application on June 08, 2021.