ASIC accepts court enforceable undertaking from former Capstone adviser
The Australian Securities and Investments Commission (ASIC) has accepted a court enforceable undertaking from a former Brisbane-based financial adviser for failing to keep up-to-date records.
Gregory Blackaby, formerly of Acquire Strategic Advisers, was found to have failed to keep adequate and up-to-date records to show he had provided clients with services they were entitled to under ongoing service arrangements.
He was also an authorised representative of Capstone Financial Planning and Capstone and Blackaby are undertaking a remediation program for his clients.
To date, this had refunded over $500,000 to clients where records were insufficient to ensure clients had received the services they were entitled to.
He was also required to notify all his clients of this program and their right to complain to the Australian Financial Complaints Authority if they had disputes that could not be resolved.
Under the terms of the undertaking, Blackaby agreed not to carry on a financial services business, provide financial services, or act in a managerial capacity of any entity operating a financial services business or providing legal, accounting, or other advisory services to financial services business.
This is the first court enforceable undertaking against a financial adviser this year, according to ASIC's court enforceable undertaking register.
Last November, the regulator accepted one from financial advisory firm Lasarith Pty and its sole director for a failure to provide statements of advice (SOAs).
ASIC said it may accept a court enforceable undertaking to improve and enforce compliance with the law and that they are not always used as an alternative to other enforcement action, they can also be used to complement or enhance such actions.
AUTHOR
Laura Dew
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
