A Sydney-based financial adviser has copped his second ban after ASIC surveillance showed that he failed to act in his clients’ best interests.
Tarandeep Aujla has been hit with a three-year ban after an ASIC review of the advice he provided while he was an authorised representative of Infocus Securities Australia and Chaucer Group found that he did not obtain adequate information from clients about their personal circumstances and recommended new insurance products without identifying or considering their existing products.
ASIC said Aujla also made recommendations about the level of insurance cover based solely on client direction instead of undertaking a thorough analysis of their needs or determining the impact of the insurance premiums on their superannuation balance.
“When providing personal financial advice, financial advisers have a legal obligation to act in the best interests of their clients,” ASIC said. “Advisers must take reasonable steps to understand and take into consideration the clients’ personal circumstances when providing personal advice, and not rely solely on client direction. ASIC expects advisers to adequately demonstrate why the advice is appropriate and why it is in their clients’ best interests.”
Aujla has the right to appeal to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.
Aujla was an authorised representative of Infocus Securities Australia from Feb. 01, 2013 to Oct. 05, 2017 and the Chaucer Group from Oct. 05, 2017. He was previously banned by ASIC for 18 months, but the ban was reduced to the period of Feb. 19 to Oct. 19, 2009 after appealing the ASIC decision.