ASIC bans adviser for fraud
AnAustralian Securities and Investments Commission(ASIC) investigation saw a South Australian financial adviser appear in the Adelaide Magistrates Court on Friday charged with fraud.
ASIC alleges that between June 1996 and January 2002, Michael Andrew Smith of Glenalta, South Australia dishonestly concealed material facts to induce clients to deal in securities, in addition to fraudulently converting proceeds of funds entrusted to him for his own or his company’s use or benefit.
Smith operated as a director of financial services firm Mossbrook - the holding company of Mossbrook Financial Planning, to which the charges relate.
Mossbrook itself was placed into receivership on February 8 2002, following the charges laid by ASIC, which relate to client monies in excess of $294,000.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions, with Smith remanded on bail to answer the charges on April 23.
Last week the peak regulator also banned Western Australian businessman Joseph Karra from acting as a representative of a securities dealer for three years, following his involvement with Exotic Timbers of Australia (Exotic Timbers).
Exotic Timbers was wound-up by the Federal Court in June 2003 following action by the regulator having divested more than 800 woodlots for over $6 million.
ASIC also moved to obtain a permanent injunction against Mark Walter David, restraining him from ever being involved in a business promoting the early release of superannuation, following his participation in a similar scheme.
David also admitted to carrying on a financial services business without holding an Australian Financial Services Licence.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
