Celebrity planner who offered 'risible advice' banned for three years
A celebrity planner who offered "risible" financial advice to a Fair Work Commissioner has been banned from working in the finance sector for three years.
Sam Henderson copped the three-year ban from the Australian Securities and Investments Commission on Wednesday after an investigation into conduct of his revealed at the banking royal commission. ASIC's investigation into Mr Henderson continues.
Mr Henderson's world came crashing down during the banking royal commission when it was revealed his staff had impersonated clients to their superannuation funds, he had misrepresented his university qualifications and that he had offered advice to Fair Work Commissioner Donna McKenna that would have led to her savings immediately losing $500,000.
Ms McKenna became an unexpected star witness during the royal commission as she described the advice given by Mr Henderson as "risible". She never took his advice, instead telling the commission that she "threw it in the bin".
Ms McKenna said the advice, which also suggested she sell her shares in Medibank Private to his business Henderson Maxwell and give the firm all of her cash, was "risible". Mr Henderson spent much of his appearance at the royal commission apologising for the conduct of his staff and agreed his advice to Ms McKenna could have been improved.
Ahead of Ms McKenna's damning testimony, Mr Henderson had been flying high. He was a regular host on Sky Business, had print columns and Henderson Maxwell had won practice of the year. Following his appearance at the banking royal commission, Mr Henderson was dropped.
In the months since Mr Henderson has been running a hamper business.
Financial advisers are required by law to act in the best interests of their clients.
ASIC commissioner Danielle Press.
ASIC said in a statement on Friday that it had found that Mr Henderson had failed to act in the best interests of his clients, provide appropriate advice and to prioritise his clients’ interests when providing personal financial advice. This led to clients either losing money or being at risk of losing money.
It found Mr Henderson failed to adequately investigate and assess his clients’ existing deferred benefit superannuation products, resulting in the client losing several thousand dollars when they rolled over their deferred benefit.
ASIC's investigators also found Mr Henderson did not properly document or investigate what products his clients already held, did not provide advice that was in line with his clients' goals, and pushed Henderson Maxwell products on his clients that were not necessarily in their best interests.
Mr Henderson was also held responsible for breaches by Henderson Maxwell that included a conflict issue. ASIC found that in 2013, Mr Henderson’s self-managed superannuation fund invested in Managed Account Holdings Limited, which then offered account services to Henderson Maxwell through a subsidiary.
"Financial advisers are required by law to act in the best interests of their clients and prioritise clients’ interests over their own when providing personal advice," ASIC commissioner Danielle Press said.
"If providing advice about product switching or recommending in-house products, we expect advisers to demonstrate how their clients’ interests are being prioritised, especially if in-house products have higher ongoing fees."
Mr Henderson has the right to appeal the ban at the Administrative Appeals Tribunal. He is no longer associated with Henderson Maxwell which was sold to another party in 2018.