RFA leaves industry after being warned on suspected misconduct

by NZ Adviser17 Aug 2016
The Financial Markets Authority (FMA) has warned a former registered financial adviser in relation to suspected misleading or deceptive conduct.
 
After an investigation, the regulator concluded the individual had engaged in misleading or deceptive conduct describing the below in a release:

    advised his clients of an alternative life cover plan with a different insurance provider but did not provide them with any information about policy pricing.  The individual then provided a direct debit form to his clients for them to complete which his clients ignored;
•    completed and submitted the direct debit form on his clients’ behalf without authority;
•    completed and submitted a declaration of good health on his clients’ behalf without authority.


The FMA decided a warning was sufficient and the adviser has since voluntarily deregistered from the FSPR and is no longer working in the financial advice and insurance industry after his employment was terminated.

He made no financial gain and is no longer is a threat to future or existing clients, the FMA stated, and has concluded this was a one-off and low monetary value incident. 

The adviser thought the product was suitable for his client when he recommended the policy change and the clients are still insured and experienced no monetary loss. 

The above factors weighted in the regulator’s decision not to name the individual involved and because of his cooperation during the FMA’s investigation. 

“While the FMA was satisfied in this case that the individual considered that the product was appropriate for his clients, by completing and submitting the relevant forms without authority his conduct was nonetheless unacceptable,” the regulator stated.

“The FMA will take action in order to denounce and deter misconduct. In this case, the FMA is satisfied that the public interest supports a warning rather than prosecution.”

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