ASIC bans another adviser
A Sydney-based financial adviser who allegedly gave investment advice while not complying with financial services laws has been banned from providing financial services for one year, following an Australian Securities and Investments Commission (ASIC) investigation.
Phillip Richard Allen was a director of Fundamental Group, between November, 2002, and September 7, 2004, and was an authorised representative of the firm until May, 2006.
ASIC alleged that Allen advised six clients to invest a total of $415,800 into the BRG Australian Equities Fund, operated by BRG Corporation, which was involved in buying and selling shares.
According to ASIC, Allen acted negligently in advising the clients as he made no enquiries about the overall structure of the BRG Fund and its legitimacy, and therefore contributed to four of the six clients losing a total of $210,000.
Allen may now lodge an application with the Administrative Appeals Tribunal for a review of ASIC’s decision.
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