A South Australian family has been banned from practising in financial services and their company has had its Australian financial services license cancelled.
The company Australian Business Insurance Advisers (ABIA) can no longer provide services to customers, while the directors, husband and wife team Terence and Wendy Franke, were both banned from working in financial services, for two years and one year respectively.
The Franke's son and trainee adviser in the company Craig Franke was banned for two years.
ASIC made a surveillance visit to ABIA in November last year and began to investigate the company further.
Terence Franke had failed to state legally obligatory information, including remuneration details, on statements of advice, and on some occasions had failed to give an SOA at all, according to ASIC.
His son, Craig, who was not an authorised representative of ABIA but a trainee adviser, gave advice unsupervised and broke the law by signing the name of another adviser on the statements of advice. ASIC declined to say whose name was used.
Wendy Franke, who received the lesser ban, had failed in her capacity as a director to ensure the company's practices and the advice issued was in line with the law.
ASIC also declined to comment as to whether other financial advisers were licensed under ABIA, only confirming there were other advisers involved "at one point in time".
