Suncorp-linked Citywide Insurance Brokers and Financial Planners, iSelect and wealth manager Wilson HTM have stopped using the term “independent” to market their businesses, following concerns expressed by the Australian Securities and Investments Commission (ASIC).

The Corporations Act prohibits use of the word and terms such as “unbiased” and “impartial” by financial services providers that include commissions as part of remuneration.

Citywide is an authorised representative of Suncorp, which pays commissions and also sets adviser sales and retention targets in exchange for commercial benefits.

“Consumers must not be misled into believing an adviser is independent and free from influence by commissions or other benefits or associations when that is not the case,” ASIC Deputy Chairman Peter Kell said.

“The independence of financial system gatekeepers such as financial advisers is an important issue for consumers and investors and may sway their decisions about investments or their choice of adviser.”

Queensland-based Citywide has removed the word from its website and taken steps to review its marketing approval process.

“We are very conscious of being a compliant and client-focused organisation,” Senior Partner Gerald Grubwinkler told insuranceNEWS.com.au. “We were completely unaware that we had breached the ASIC regulation in relation to the use of the word ‘independent’.

“From our own research, we don’t believe any clients have been misled in any way.”