Two ANZ-aligned advisers have received permanent bans from ASIC after the regulator found they had made fake insurance claims to maximise commission revenue.
The regulator found that Matthew Wallis and Rochelle Manoharan, directors of RI Advice-licensed Found Financial Services, had submitted insurance applications to Zurich that were not requested by clients, were made without permission and contained false information.
The falsified applications were made to “maximise the amount of up-front commission received by Found Financial”, according to a statement from ASIC.
“The false insurance applications were for life insurance, TPD insurance, trauma and income protection insurance,” the statement said.
“Found Financial paid the monthly premiums for a short period of time to give the appearance that the policies were genuine. In each case the policies lapsed because of non-payment.”
ASIC deputy chair Peter Kell said the regulator will continue to take action against advisers who do not act in their clients’ interests.
“People working in the financial services industry must be trusted to act with integrity. If they engage in dishonest conduct, ASIC will remove them from the industry,” he said.
ANZ agreed in October to sell its aligned dealer groups (including RI Advice) to IOOF as part of a move to “create a simpler, better balanced bank”.