The Australian Securities and Investments Commission (ASIC) has banned Commonwealth Financial Planning (CFP) adviser Joe Chan for two years.

The regulator says Mr Chan had not complied with the dealer group’s procedures between December 2006 and October 1 2010.

ASIC says he falsely classified client files as “defined scope advice”, meaning the client had asked for advice in only one area when in fact all financial options were available.

It also says he induced clients to buy insurance by offering to waive the adviser service fee, and that he altered statements of advice.

Mr Chan was the servicing planner for former CFP adviser Don Nguyen, who was banned in March by ASIC from providing financial services for seven years.

If Mr Chan decides to rejoin the financial services industry, he has agreed to be strictly supervised for six months.

ASIC has now banned five former CFP advisers from giving advice, following recent investigations.