ASIC bans adviser for four years
The collapse of a managed investment scheme has led the Australian Securities and Investments Commission (ASIC) to ban a Victorian adviser for four years and suspend the licence of the firm he worked for.
Kevin Whitting of Mornington worked as an authorised representative of South Gippsland-based financial services firm Kedesco while he advised a number of clients to put their money into the now collapsed scheme, Blue Diamond Deposits Trust.
ASIC found Whitting failed to comply with financial services law when he provided advice to a number of clients between May 2007 and February 2009.
The regulator said Whitting made false statements by describing the Blue Diamond Deposits Trust as fixed interest when that was not the case, and that he failed to determine the personal circumstances of his clients when giving advice.
ASIC also suspended the licence of Kedesco for three months for failing to take reasonable steps to ensure its representatives complied with financial services laws and were adequately trained.
Kedesco must meet a number of conditions during its suspension or its license will be cancelled, namely it must replace the key person for the Australian Financial Services Licence and document procedures it will adopt to ensure compliance in the future.
Both Whitting and Kedesco have the right to appeal to the Administrative Appeals Tribunal for a review of the decision.
AUTHOR
Ashleigh McIntyre
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