Adviser banned for inappropriate advice
The corporate regulator has banned a former representative of the Lonsdale Financial Group from providing financial services for five years after finding he gave clients inappropriate investment advice and also breached the Corporations Act.
The questionable activities of Ian Williams spanned March 2003 and April 2005, when he convinced a client to invest in XSIQ International, a company in which he was a director.
Following an investigation, the Australian Securities and Investments Commission (ASIC) found he had taken unfair advantage of his client and had placed the interests of XSIQ and his own ahead of those of his client.
ASIC also alleged he issued inappropriate advice to another client when he suggested investing the funds from a deceased estate into XSIQ without a reasonable basis for doing so.
Furthermore, ASIC alleged Williams failed to issue Statements of Advice to 25 clients in circumstances where it was a requirement to do so under the Corporations Act.
Lonsdale revoked Williams’ authority to act as one of its representatives in March 2005.
“Financial advisers must always act in the best interests of their clients. Where, as in this case, advisers put their own interests above the interests of their clients, ASIC will take strong action,” ASIC executive director, compliance, Jennifer O’Donnell said.
In Western Australia, ASIC has brought 33 charges of fraud against Anthony Pisano in the Armadale Magistrates Court.
The regulator alleges that between June 1996 and July 2001, while running Pisano Financial Services, Pisano defrauded investors of just under $1.5 million.
Pisano was granted bail on condition that he provides a $200,000 personal undertaking with a $100,000 surety, surrenders his passports, and does not attempt to leave the country.
He is set to reappear in the Perth Magistrates’ Court on September 5, 2006.
AUTHOR
Recommended for you
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
With a growing number of advisers now running their own business, they need to pivot their career identity to being a business owner rather than just as a financial adviser if they want to futureproof their business.
Zenith Investment Partners has launched a range of new managed account portfolios over the past quarter, including on Insignia Financial’s Expand platform.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
