The corporate regulator has accepted an enforceable undertaking (EU) from Queensland-based risk adviser Jason Churchill after a review of the advice he provided found he had made inappropriate replacements of clients’ risk policies.
According to ASIC, the EU follows a review of the advice provided by Mr Churchill of Churchill Consulting Services Pty Ltd – trading as CCS Insurance Solutions – in Carrara, Queensland.
ASIC’s review found that Mr Churchill’s advice relating to the replacement of insurance policies "did not meet the standards expected of a financial adviser" and that he had failed to comply with financial services laws.
In some instances, ASIC found that Mr Churchill had “failed to undertake adequate inquiries” into the personal circumstances of clients.
It was also found he had failed in some instances to provide adequate replacement product advice to the client in the SOA, preventing the client from “making an informed decision to switch insurance cover".
Mr Churchill “inadequately demonstrated” in some cases the benefits of a stepped or level premium, according to ASIC, and failed to consider the competing priorities of adequate insurance versus affordability. He also “limited the advice” in some cases to exclude issues which cannot reasonably be excluded from the scope of advice, ASIC found.
“Under the EU, Mr Churchill has agreed to undergo additional training in relation to the provision of financial product advice and must adhere to strict supervision requirements for 12 months and have each piece of advice audited by his authorising licensee before it is provided to the clients,” a statement from ASIC said.