The Australian Securities and Investments Commission (ASIC) has imposed conditions on Suncorp-owned Guardian Advice’s financial services licence.

It comes after surveillance showed problems with advice issued by some authorised representatives

ASIC requires Guardian to appoint an independent consultant to review its compliance.

The dealer group must develop a plan to rectify any deficiencies identified by the consultant, which will report regularly to ASIC over the next two years.

The surveillance was triggered when Guardian recruited a number of advisers from AAA Financial Intelligence and AAA Shares after ASIC cancelled their licences in 2013.

It found those advisers had not “demonstrated reasonable basis for the advice provided” and advice was not in clients’ best interests.

Guardian did not have adequate arrangements in place to comply with its licence obligations.

Areas of concern included failure to monitor representatives’ competence, inadequate measures to meet record-keeping obligations and its response to breaches by representatives.

ASIC Deputy Chairman Peter Kell says the weaknesses in Guardian’s systems and controls showed ongoing risks of unsuitable advice being provided.

“This outcome underlines ASIC’s strong commitment to lifting standards in the life insurance sector,” he said. “When we come across instances that raise issues for the confidence consumers have with advice, we will take action.”

Meanwhile, Asteron EGM Distribution Jordan Hawke has left the company to spend a year travelling around Australia with his family.

He has been at the Suncorp subsidiary for nearly seven years.  

Mark Vilo has replaced Mr Hawke on a temporary basis until the role can be permanently filled.