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Monday 4 June 2012

12-111MR 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, Joe Chan, 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.

Mr Chan was the servicing planner for former CFPL adviser Don Nguyen, who ASIC banned from providing financial services for seven years (refer: 11-42AD).

ASIC has concerns that between 20 December 2006 and 1 October 2010, Mr Chan of Meadowbank, New South Wales:

  • falsely classified client files;
  • encouraged clients to purchase insurance by advising them that he would waive the adviser service fee; and
  • provided false information in Statement of Advice documents.

Under the EU, Mr Chan has agreed not to provide financial services in any capacity for a minimum of two years. He must also adhere to strict supervision requirements for six 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.

This latest outcome follows investigations of other former CFPL financial advisers, Don Nguyen, Simon Langton (refer 12-02AD), Christopher Baker (refer 12-63AD), Anthony Awkar (refer 12-81MR) and Jane Duncan (refer 12-80MR) and reflects ASIC’s commitment to ensuring financial advisers meet required standards to maintain consumer confidence in the financial services system.

Background

On 25 October 2011, ASIC accepted an Enforceable Undertaking from CFPL requiring them to review their risk management framework and address deficiencies. 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 for further information.

Former clients of Mr Chan or clients of other CFPL advisers who feel they may be entitled to claim compensation should contact CFPL directly on 1800 507 281.

Download the enforceable undertaking

Last updated: 04/06/2012 12:00