ASIC bans former Madison Financial-aligned adviser

ASIC has banned Mr Kolody for five years and six months for misconduct that occurred between July 2010 and January 2014 when he was an authorised representative of non-aligned dealer group Madison Financial Group.

According to ASIC, Mr Kolody was not "adequately trained or competent" to provide financial advice and had failed to comply with the law.

Following a review of client files, the regulator found Mr Kolody provided advice to clients that "was not appropriate to their personal circumstances" and also prepared documents that may have "mislead clients about their legal entitlements".

"[The files also show he] failed to maintain adequate records of his advice or provide clients with a Statement of Advice that adequately set out the basis on which his advice was given," a statement from ASIC said.

"[And he also] provided inadequate information on some commissions he received."

ASIC deputy chairman Peter Kell said Mr Kolody's conduct demonstrates a "clear failure" to meet the best interests of his clients.

"Financial advisers must provide appropriate advice, and they must keep adequate records that set out the basis on which the advice is given," Mr Kell said.

Mr Kolody has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.

Mr Kolody has not been in the industry since March 2014.