The Financial Services and Credit Panel (FSCP) has made an order to suspend the registration of financial adviser Ian Reid for three months from 21 November 2024. Mr Reid’s financial adviser registration is not in force during the suspension period and he must not provide personal advice to retail clients in relation to relevant financial products.
The FSCP found Mr Reid had not complied with his obligations when providing advice to three clients. Mr Reid used records of advice (ROA) that relied on statements of advice (SOA) that had been given to the clients up to seven years ago.
The FSCP was reasonably satisfied that the further advice exemption from giving an SOA in regulation 7.7.10AE of the Corporations Regulations 2001 did not apply to two of the three clients because there had been changes in those clients’ relevant personal circumstances which were significantly different from that in relation to the previous advice.
For all three clients, the FSCP was reasonably satisfied that the s961B and s961G obligations were not complied with. This was because there was not sufficient evidence on the client files:
that reasonable enquiries were made about the client’s relevant circumstances
that, of the enquiries that were made, the results of those enquiries were taken into consideration and advice scoped appropriately
that the clients’ strategic advice needs were taken into consideration
demonstrating why the previous recommendations in the SOA remained appropriate, and
that the relevant provider based all judgements in advising the client on that client’s relevant circumstances.
