Financial planner cops 4-year ban for best interests breach

In a statement, ASIC said Hobart adviser Hannah Jennings had been banned from providing financial services, carrying on a financial services business and controlling an entity that carries on a financial services business for four years, as of 1 April this year.

An investigation had found that advice Ms Jennings provided around gearing had not been in her clients’ best interests.

“ASIC reviewed advice provided by Ms Jennings which recommended clients continue with double gearing strategies despite knowing that clients struggled to service the borrowing arrangements,” the regulator said.

“In providing this advice, Ms Jennings had no regard to the clients’ relevant personal circumstances, their cash flow position or their ability to cover margin calls. Ms Jennings also failed to consider an exit strategy for her clients as well as appropriate personal insurance cover.”

Additionally, ASIC found Ms Jennings failed to keep proper records and was not adequately trained or competent to provide financial services.

“Her lack of understanding about her legal and professional obligations as a financial adviser created additional risks to her current and future clients,” the regulator said.

Ms Jennings had originally applied to the AAT for a review of her decision but had withdrawn the application earlier in June.

Ms Jennings’ practice, FF Planning Solutions, had been licensed through InterPrac since 2017 and she had worked in the industry since 2009.

The conduct relating to the banning had also occurred when she was an authorised representative of MLC-aligned dealer group Meritum.