ASIC accepts EU from former Suncorp adviser

Duane Wright of First National Home Loans and Insurance was an authorised representative of the now defunct Suncorp-owned GuardianFP (also known as Guardian Advice) between July 2012 and April 2016, during which time ASIC said he failed to meet his obligations providing life insurance replacement advice.

ASIC found that Mr Wright failed to undertake adequate inquiries into his life insurance clients’ circumstances, failed to provide adequate replacement product advice in his SOAs, advised clients to purchase policies that were too expensive for them, and failed to consider the long-term impact life insurance policies would have on clients’ retirement savings.

Under the enforceable undertaking, Mr Wright and First National have agreed to “undergo additional training in relation to the provision of financial product advice”, and will be required to adhere to “strict supervision” for 12 months, with all advice audited by the authorising licensee before being provided to clients.

Mr Wright is currently an authorised representative of Centrepoint-owned Alliance Wealth.

Suncorp announced it would cease managing Guardian Advice in November 2015 after the business was placed under a number of licensing conditions in January, which came after an ASIC investigation uncovered deficiencies in the dealer group’s retail advice.