In December 2014, the Australian Securities and Investments Commission imposed additional licence conditions on the Australian financial services licence of Guardian Advice. This followed surveillance which uncovered deficiencies in the advice it provided to retail clients, according to an ASIC statement, also published yesterday.

Suncorp Life and Superannuation Limited has undertaken to ASIC to complete the client remediation programme of work provided for in the additional licence conditions and to fund the compensation of Guardian Advice clients, if required, ASIC said. Suncorp has also committed that all relevant recommendations made by the expert appointed to Guardian Advice, under the additional licence conditions, will be implemented in the continuing Suncorp financial advice business.

In its statement yesterday, Suncorp, which made no reference to the ASIC issue, said it was exiting the businesses to “simplify its business model”.

Acting chief executive of Suncorp Life, Jeremy Robson, said: “We have made the decision to simplify our distribution model in line with our strategic priorities and in the interests of advisors and customers. We’re focused on working with our independent advisor and direct distribution businesses to support the evolving needs of customers.

“Over the next six months we will be working closely with both the Guardian Advice and Suncorp Financial Planning advisors to explore options such as transitioning them to other licensees in the market if they choose,” Robson said.