Spectrum Wealth adviser Gurumukh Singh Mehra has been banned from providing financial services for three years for failing to act in the bests interest of his clients.
Spectrum Wealth is owned by Freedom Insurance Group, whose life insurance arm felt the ire of the royal commission just last month.
Freedom Insurance was grilled during the insurance public hearing round, with the commission hearing that it sold more than $100,000 of life insurance to man with Down syndrome.
It was also revealed that Freedom had offered trips to Bali, Vespa scooters and big bonuses to staff as part of an aggressive sales culture that put products before client needs.
Not dissimilarly, Mehra had failed to make reasonable inquiries into his clients’ relevant circumstances or adequately investigate their existing financial products among other failings, according to watchdog ASIC.
“ASIC also found that Mr Mehra is not competent, or adequately trained, to provide financial services,” ASIC said in a statement.
Following the royal commission revelations, Freedom Insurance’s chief executive and chief financial officer both departed the company and fired half its staff as its share price plummeted by more than 70 per cent.
According to the Freedom Insurance website:
“Until September, 2018 Freedom offered a range of simple insurance solutions direct to consumers through its call centre, usually on a no advice basis. Currently, Freedom is not offering insurance products to new customers but continues to service its large number of existing customers.
Spectrum offers more complex insurance solutions with a range of fully underwritten products. These are offered through an extensive network of financial advisers who can provide customers with both general and personal advice as required.”