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
Recommended for you
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
Four months after making its first equity partnership, the Australian Wealth Advisors Group has taken a second stake in a regional Victorian advice and accountancy firm.
High-net-worth advisers seeking to grow their businesses are likely to find alternatives to be a key part of the puzzle amid investor demand, according to Praemium’s head of private wealth.
The financial advice profession has lifted back above the 15,500 mark this week thanks to a double-digit net rise in adviser numbers, according to Wealth Data.
