Qld-based adviser slapped with 3-year ban

ASIC has confirmed that the ban placed on Keith McDermott – an authorised representative of The FinancialLink Group – also prohibits him from managing, supervising or auditing the provision of financial services, as well as training about financial services and products.

Mr McDermott was found to have recommended some of his clients invest in high-risk fund, the Investport Income Opportunity Fund, which ASIC says “the high-risk nature of the investment did not match those clients’ risk profiles”.

Despite this, Mr McDermott recommended that some clients invest a high percentage of their retirement savings in the fund.

The corporate regulator deemed that Mr McDermoitt failed to provide appropriate advice that was in the best interests of his clients and that he failed to prioritise clients’ interests ahead of his own and the licensee.

He also did not disclose the charges, lost benefits or the risk of switching funds to the Investport Income Opportunity Fund to clients.

Mr McDermott’s ban took effect from 3 August 2021.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.