Another adviser falls in Wattle saga
The continuing investigation into the failure of the Wattle Group has claimed an-other financial adviser.
The continuing investigation into the failure of the Wattle Group has claimed an-other financial adviser.
The Australian Securities and Investment Commission (ASIC) has banned Former Financial Wisdom adviser Ross Michael Cardillo of Mareeba from acting as a rep-resentative of either a securities dealer or an investment adviser for 15 months, ef-fective from early May.
ASIC Queensland regional commissioner Greg Tanzer says the order to ban Car-dillo was due to a serious failure by Cardillo to comply as a licensed representative under securities law.
"Before a representative recommends an investment, the law requires it to be ap-proved by a licensed dealer or licensed adviser. Cardillo failed to do this," Tanzer says.
"Cardillo was not looking after his clients and in the interests of consumer protec-tion ASIC has removed him from the industry."
ASIC decided to restrict Cardillo's activity as it felt he had not performed, nor will perform, the duties of a representative of a dealer or investment adviser to an ac-ceptable level. ASIC also found that he had breached a securities law.
The banning decision was due to Cardillo acting as a sourcing agent for Mackay & Allen, an unlicensed company which promoted investment in the failed Wattle Group.
ASIC found Cardillo breached the Corporations Law by acting as a representative of Mackay & Allen and receiving commissions for arranging presentations to po-tential Wattle investors.
It also found he received signed agreements and cheques from investors before passing them onto Mackay & Allen.
ASIC says Cardillo referred clients to an unlicensed dealer, did not research the in-vestments or make inquiries about the scheme operators.
As a representative of his licensed dealer, Financial Wisdom, he also breached a duty he owed to it by introducing clients to an unlicensed dealer even after Finan-cial Wisdom had given contrary instructions.
ASIC has commenced legal action against Wattle Group investment scheme op-erator Geoffrey Dexter and Mackay & Allen.
AUTHOR
Jason Spits
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