Melbourne-based Financial Adviser, Ashok Sherwal, hit with 6-year ban
ASIC has banned a Melbourne-based adviser from providing financial services and performing any function in a financial services business for six years.
On Wednesday, the corporate regulator confirmed the ban for Ashok Sherwal, saying he “advised clients in need of cash to replace their existing insurance and superannuation products, as well as to take out new insurance products, so that he could generate advice fees and insurance commissions”.
ASIC claims that Mr Sherwal used some fees and commissions received to make cash payments to these clients.
He was found to have failed to identify the scope of advice being sought by his clients and didn’t obtain complete and accurate client details, which led to clients receiving inappropriate advice and their superannuation balances being “significantly eroded”.
In its decision, ASIC found that Mr Sherwal misunderstood the best-interest duties required of him and demonstrated an inability to follow proper financial advice processes.
Mr Sherwal has appealed to the Administrative Appeals Tribunal for a review of ASIC’s decision.
