ASIC and Saxby get ready for round two
TheAustralian Securities and Investments Commission(ASIC) has lodged an appeal in the Federal Court contesting an Administrative Appeals Tribunal (AAT) decision to reinstate the securities dealer licences of Saxby Bridge Financial Planning and ABS Securities, and allow director of both groups, Jeffrey Braysich, to again operate as an investment specialist.
Last month the AAT upheld an appeal by both firms and Braysich disputing the November 2001 ruling revoking Saxby and ABS’s dealer licences and banning Braysich from acting as an investment dealer or adviser for five years.
ASIC, bringing the action in Sydney’s Federal Court, has also filed a motion seeking a stay of the AAT decision pending the appeal and that the appeal hearing be expedited.
The AAT decision in May was made with the stipulation that there must be more effective disclosure of fees and commissions in future, and clear transparency of any interest that might influence advice by Saxby and ABS.
However ASIC voiced its “disappointment” with the AAT decision at the time, and has now taken action - with a hearing scheduled for July 15 - to reverse the AAT decision.
The highly publicised stripping of Saxby and ABS licences back in 2001 followed an investigation by the watchdog which discovered that both companies and their shared director, Braysich, were involved in the marketing of tax schemes to their clients in a manner that created serious concern.
ASIC claimed that Braysich had an alarming conflict of interest as he stood to receive, through other groups he ran, a share of the profits generated by some of Saxby and ABS sponsored tax schemes, including the Preston Vale Vineyard Project and the No Regrets I Project.
ASIC also found Saxby Bridge and ABS had a remuneration structure that encouraged individual advisers to recommend tax schemes to their clients over alternative and less risky investments such as managed funds.
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