Gold Coast-based financial adviser Jeneve Matai has been barred from the industry for four years after the Australian Securities and Investments Commission (ASIC) found he “inappropriately scoped” life insurance for his clients.

ASIC says the four-year ban took effect on December 13 last year.

He had applied to the Administrative Appeals Tribunal (AAT) seeking a review and stay of ASIC’s decision, and in February the AAT refused the stay application, ASIC said. No hearing date has been set for the substantive review of ASIC’s decision.

ASIC says Mr Matai was an authorised representative and financial adviser of National Advice Solutions Pty Ltd from July 4 2019 to December 2 last year. He was also the head of advice for the superannuation team, and assistant training manager at a corporate authorised representative of National Advice Solutions.

A review of a sample of advice provided by him found he did not act in the best interests of clients, the advice was not appropriate, and he prioritised his interests or that of his AFS licensee over the interests of the client, ASIC said.

He provided advice in accordance with what his licensee called a “layered advice” strategy whereby the advice was separated into pre-determined topics, irrespective of the client’s personal circumstances, goals or advice needs.

The layered advice strategy was a process by which clients were provided with superannuation and insurance advice separately, even though the insurance was held within the superannuation fund.

“ASIC found that by using the layered advice strategy, the advice was templated, inappropriately scoped, and Mr Matai failed to identify or consider the relevant circumstances of the clients when preparing the advice,” the regulator said.

“This included when recommending the client participate in an ongoing advice arrangement.”

Although he was not responsible for the design and implementation of the layered advice strategy, as a financial adviser he is required to comply with financial services laws, and cannot assign his obligations to others, ASIC said.

He also audited the files of other financial advisers on an as needed basis, and ASIC found that he failed to identify issues that a competent person auditing the files would have identified.

ASIC has previously taken administrative action against National Advice Solutions and its responsible managers.

In December last year ASIC cancelled the AFS licence of National Advice Solutions because the licensee failed to ensure that the financial services covered by the licence were provided efficiently, honestly and fairly.