ASIC cancels AFS licence of United Wealth Group
The Australian Securities and Investments Commission (ASIC) announces that it has cancelled the Australian financial services (AFS) licence of United Wealth Group Pty Ltd.
ASIC found that the operation of a one size fits all advice model and the use of generic reasons to support personal advice recommendations meant United Wealth Group failed to ensure its financial services were provided efficiently, honestly and fairly.
The regulator found that United Wealth Group were issuing misleading SOAs by incorrectly disclosing administration fees payable by clients, failing to disclose the licensee’s association with a product provider and not properly disclosing the risks of a specific product recommendation.
ASIC also found United Wealth Group failed to take reasonable steps to ensure its authorised representatives complied with financial services laws.
Under the terms of the cancellation, United Wealth Group’s licence will remain in effect for 12 months solely for the purposes of maintaining its membership of the Australian Financial Complaints Authority (AFCA) and its obligation to hold professional indemnity insurance cover.
United Wealth Group has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.