ASIC acts against two advisers
The Australian Securities and Investments Commission (ASIC) has banned Victoria-based financial adviser, Sebastian Konjevic, from providing financial services for five years for misleading and deceptive conduct, while bankrupt Queensland-based adviser, Kelvin William Roy Fair has been barred for six months.
An investigation by ASIC found that between 19 March 2012 and 15 August 2012, Konjevic, a UBS AG client adviser, had an arrangement with Astra Resources PLC, underwhich he stood to receive 900,000 Astra shares and referrals from Astra of its shareholders to act as their adviser, if he caused UBS clients to acquire Astra shares, and if he assited the company in obtaining UBS custody services.
ASIC found that several UBS clients invested a total of $1 million in Astra on Konjevic’s recommendation and as a result 900,000 Astra shares were received by a nominee of Konjevic, however, the receipt of the shares were not disclosed to UBS or UBS Wealth.
ASIC commissioner, Greg Tanzer said, “Financial advisers are required to avoid actual or potential conflicts of interest and abide by the policies their employers have in place to manage this. Advisers who fail to meet these obligations and pursue their own interests will be removed from the industry.”
ASIC found Konjevic had engaged in misleading and deceptive conduct under the Corporations Act 2001 (Corporations Act) because he had not adhered to various UBS codes of conduct, including the Code of business conduct and ethics of UBS, Gifts policy and Corruption policy, and was in a position of conflict, and was likely to have misled his employer and UBS Wealth into assuming that he was complying with the various codes of conduct and relevant policies, and was not in a position of conflict as required under those policies, when this was not the case.
UBS Wealth, who cooperated with ASIC’s investigation, reported Konjevic’s conduct to ASIC and terminated his employment in April 2013.
Meanwhile, Fair, an authorised representative of Ballast Financial Management Pty Limited, was banned from providing financial services after he failed to declare his bankruptcy to his Australian financial services licensee, and in doing so deprived the licensee of the opportunity to disclose his bankruptcy to its insurer.
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