A Spectrum Wealth Advisers representative whose insurance recommendations were based on the size of the cut he would receive rather than the needs of his clients, has been banned from providing financial services for five years.

The Australian Securities and Investments Commission (ASIC) says Hunter Valley-based Sean Lewis recommended insurance that would generate him large commissions, regardless of whether the products were appropriate for his clients.

“When providing insurance advice, Mr Lewis prioritised his own interests over that of his clients,” ASIC said.

The regulator investigated Mr Lewis, who has also worked at Chubb and AMP, while he was an authorised representative of Spectrum. ASIC found he failed to comply with financial services laws, including by failing to provide advice that was in the best interests of his clients or appropriate for his clients’ objectives.

Mr Lewis gave insurance advice to all clients. He was also criticised for telling them to use a Limited Recourse Borrowing Arrangement (LRBA) to buy property through a self-managed superannuation fund (SMSF).

He did not adequately investigate or offer any alternative investment strategies that may have provided greater diversification of risks, ASIC said.