Advisers’ secrecy bid over high-profile case

AN industry group representing financial planners tried to keep secret its investigation of “damning” allegations against high-profile adviser Sam Henderson, the finance industry royal commission has heard.

And the Financial Planning Association tried to avoid having the report published as part of the commission process, it has heard.

It also emerged yesterday the FPA ignored its own in- vestigator’s recommendation against Mr Henderson over advice that would have lost a client $500,000.

Mr Henderson has a high public profile after appearing on various TV programs, writing columns in newspapers and hosting events for the FPA.

Counsel assisting the commission Rowena Orr, QC, tabled a confidential FPA email that showed it was worried about negative publicity for Mr Henderson.

It said “any publication by the royal commission identifying Mr Henderson would render the conduct review committee process worthless to Mr Henderson, undermine the process of the conduct review commission and damage the FPA’s relationship with other members”.

Under questioning, FPA chief Dante De Gori said Mr Henderson was “uncooperative” over an investigation into the advice he offered then client Donna McKenna.

Mr De Gori acknowledged the inquiry into the advice had now been running more than a year. It emerged on Tuesday Ms McKenna would have lost $500,000 in superannuation if she had taken Mr Henderson’s advice and that a woman from Mr Henderson’s office impersonated her in a phone call.

Ms Orr yesterday said the internal FPA report was “damning” and highlighted a “conscious decision to place his own interests before those of the client”.

But instead of throwing the book at Mr Henderson, the decision on his fate was handed to the FPA’s conduct review committee.

In a watered-down recommendation to that committee, the FPA suggested reprimands such as making Mr Henderson pay his overdue membership fees and making his staff do more training.

It also recommended Mr Henderson get an independent person to review his business practices but that the findings be kept from the public.