Queensland adviser Grant Thomson has been banned from providing financial services for five years after he recommended levels of insurance coverage that incorporated mortgages clients had yet to obtain.

While working at Australian Mortgage and Financial Advisers, Mr Thomson also had clients sign application forms, ongoing service agreements for advice and authority to proceed documents before they had received statements of advice, according to the Australian Securities and Investments Commission.

“ASIC found it had reason to believe Mr Thomson is not a fit and proper person, is not adequately trained or is not competent to participate in the financial services industry and is likely to contravene a financial services law,” the watchdog said.

He failed to provide financial advice that was appropriate and in clients’ best interests, it adds.

Mr Thomson was an adviser at Australian Mortgage and Financial Advisers from September to November 2023, and at LFG Financial Services from November 2023 until last Monday.

The banning order allows Mr Thomson to control Balanced Life Financial Group and Balanced Life Wealth Strategies until the end of August, and to perform any function involved in running those financial services businesses until the end of September.

The Balanced Life Financial Group website says it is an authorised representative of LFG Financial Services and Mr Thompson is its founder.