A Sydney-based former financial adviser has been banned for
failing to submit a statement of advice and breaches of
ASIC confirmed that Atish Prasad of Westmead and former
authorised representative of Lionsgate Financial Group has been banned for three years. Prasad did not: provide a statement of
advice within the required timeframe, was not adequately trained or competent to provide a financial service; and failed to comply with the financial services laws. The corporate regulator said that the misconduct occurred between June 2013 and December 2013.
Under the Corporations Act 2001 it is mandatory for all financial services providers to give a Statement of Advice to retail clients who receive personal financial advice. The statement of
advice must be clear, concise and effective and needs to be adequate enough to convey to the client that they understand the personal advice given to them and decide whether or not to rely on it.
Peter Kell, ASIC Deputy chairman reiterated the importance of keeping accurate and up to date records detailing a client’s circumstances and the advice given. Kell said that, “these records
provide an explanation to the client as to why the advice was provided. They are also integral to
enabling the licensee to comply with its obligations to ensure that its representatives provide advice that is in the best interests of the client.”