“HGL and Wang’s actions represent a serious and deliberate departure from the standards expected of a licensed financial advice provider.”
Unger said the cancellation of HGL’s licence is critical to ensuring the protection of consumers and the integrity of the market.
“Wang has not accepted his conduct, all allegations have been denied and attempts made to blame another financial adviser who was never engaged by HGL at the time the applications were submitted,” she said.
The FMA’s inquiries identified material breaches of obligations, including:
- Submitting second policy applications for existing clients using incorrect or false customer information to conceal that the policies were duplicates;
- Completing an authority to accept a direct debit form on behalf of a client without obtaining the client’s authentic signature;
- Failing to obtain client consent for first and second policies (with the same or similar cover) to remain active during a significant period, causing clients to pay two premiums;
- Misleading clients by recommending second policies to benefit from lower premiums under a promotional offer, despite clients being ineligible (e.g., already existing policyholders);
- Failing to ensure clients understood the advice provided. In some cases, clients were incorrectly advised that a new policy was needed because their existing policy would become more expensive after 24 months; in two cases, clients were told to take out a new policy to obtain a second luxury item – despite being ineligible for that benefit.
HGL held a full financial advice provider licence and provided personal risk insurance advice (life and health insurance, income protection insurance, trauma and disability insurance) to retail clients.
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