ob体育 has banned Queensland-based adviser Keith Robert McDermott from providing financial services for three years.聽
The three-year ban also prohibits Mr McDermott from managing, supervising or auditing the provision of financial services and prohibits him from the provision of training about financial services and products.聽
ob体育's surveillance looked at advice Mr McDermott provided to clients while he was an authorised representative of Australian financial services (AFS) licensee, The FinancialLink Group Pty Ltd (TFLG).
ob体育 found Mr McDermott recommended some of his clients invest in a high-risk fund, the Investport Income Opportunity Fund (the Fund). The high-risk nature of the investment did not match those clients鈥� risk profiles. Mr McDermott also recommended that some clients invest a high percentage of their retirement savings in the Fund, magnifying the risks for those clients.
ob体育 identified Mr McDermott failed to provide advice that was appropriate and/or in his clients鈥� best interests. Mr McDermott鈥檚 actions failed to prioritise his clients鈥� interests ahead of his own and those of his licensee.
In addition, Mr McDermott failed to disclose the charges, lost benefits and other significant consequences, including the risks, arising from his recommendation to switch client funds from existing financial products into the Fund.
Advisers have a duty to provide advice that prioritises their client鈥檚 interests ahead of their own interests and/or the interests of their licensee.
The banning of Mr McDermott is part of 础厂滨颁鈥檚 ongoing efforts to improve standards across the financial services industry.
Mr McDermott鈥檚 banning, which was effective from 3 August 2021, has been recorded on 础厂滨颁鈥檚 publicly available and the .
Background
Mr McDermott was an authorised representative of TFLG from 19 February 2014.
The Investport Income Opportunity Fund (ARSN 121 875 009) is a registered managed investment scheme operated by Endeavour Securities (Australia) Limited (under external administration). The Fund is an entity related to Mr McDermott鈥檚 former licensee, TFLG.
If any financial advice clients have concerns about the advice they have received, they should lodge a complaint with the AFS licensee in the first instance. If a client is dissatisfied with the AFS licensee鈥檚 response to their complaint, they can lodge a complaint with the Australian Financial Complaints Authority (AFCA)
础厂滨颁鈥檚 has useful information for consumers whose advisers have been banned.
Matter background
19-065MR Endeavour and Linchpin placed into liquidation after ob体育 court action
20-122MR ob体育 bans three directors of Linchpin and Endeavour