A financial planning business has admitted intentionally providing false information to AMP on clients' insurance applications, putting them at risk of having their policies cancelled.
Fong Financial Planners pleaded guilty in the Perth Magistrates Court to three charges of dishonest conduct, the Australian Securities and Investments Commission said on Monday.
In 2014, while serving as an authorised representative of financial services company AMP, Fong Financial Planners failed to disclose all relevant information relating to the personal circumstances of the clients, including details of their health and medical history.
Had this information been disclosed by Fong Financial Planners, further medical assessments and questionnaires may have been requested by AMP and exclusions may have applied to some of the insurance policies, the corporate watchdog said.
The incomplete disclosure of the information by Fong Financial Planners meant the duty of disclosure owed by the clients to the insurer had not been met and they risked not being covered by AMP under the relevant policies.
The matter was committed to the District Court of Western Australia for mention on May 19 to fix a date for sentence.
