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12-02AD ASIC accepts enforceable undertaking from former Commonwealth Financial Planning adviser
ASIC has accepted an enforceable undertaking (EU) from former Commonwealth Financial Planning Limited (CFPL) employee, Simon Langton, after he failed to meet various obligations as a financial adviser.
The EU follows an investigation into the advice provided by several of CFPL’s financial advisers. CFPL is a wholly owned subsidiary of the Commonwealth Bank of Australia (CBA) and operates under the advice structure of Colonial First State, which is also part of the CBA.
Between 7 April 2008 and 23 June 2010, Mr Langton of Mindarie, Western Australia, was found to have:
- failed to complete Financial Needs Analysis documentation
- allowed clients to sign blank Financial Needs Analysis documentation
- failed to make reasonable inquiries in relation to the personal circumstances of clients before implementing advice
- failed to provide clients with Statements of Advice
- failed to provide Statements of Advice within a reasonable time period; and
- failed to disclose fees in a Statement of Advice provided to a client.
Under the EU, Mr Langton has agreed not to provide financial services in any capacity for a minimum of two years. He has also undertaken to complete appropriate professional education requirements and must adhere to strict supervision requirements for 12 months should he decide to re-enter the financial services industry.
This outcome reflects ASIC’s commitment to ensuring financial advisers meet required standards and maintaining consumer confidence in the financial services system.
On 25 October 2011, ASIC accepted an enforceable undertaking (EU) from CFPL requiring them to conduct a comprehensive review of their risk management framework and develop a plan to address any deficiencies in that framework. Further, where clients are found to have been adversely impacted by the conduct of representatives, CFPL will consider the circumstances and appropriately remediate the client. See 11-229MR ASIC accepts enforceable undertaking from Commonwealth Financial Planning for further information.
Former clients of Mr Langton or clients of other CFPL advisers who feel they may be entitled to claim compensation should contact CFPL directly on 1800 507 281.
ASIC’s investigations into the conduct of several other CFPL advisers is ongoing.