ASIC bans former Lifestyle Group CEO
The Australian Securities and Investments Commission (ASIC) has banned former Lifestyle Group chief executive Murray John Priestley from providing financial services for three years, effective from 3 June 2013.
The regulator said that Priestley, of Benowa, Queensland, had been CEO of the Lifestyle Group of companies from 6 April 2009 until 9 December 2011 and the banning was based on ASIC having found that he "made misleading statements to a client when he guaranteed the client that the ‘Aussie Rob Lifestyle Trader' software was not based on moving averages, when in fact he did not know how the software worked".
It said ASIC had also found that Priestley was personally involved in the development and marketing of a product named ‘Elite Investor' and that he engaged in misleading or deceptive conduct, including making misleading statements to potential investors.
The regulator also found that Priestley authorised inadequate, conflicting and confusing information about Elite Investor to be given to potential investors.
Commenting on the banning, ASIC deputy chairman Peter Kell said company officers in the financial services industry had a duty to ensure that their organisation was meeting the obligations placed upon them.
"This matter shows that company officers in the financial services industry, as important gatekeepers, need to ensure that any promotional information provided about their products is factually correct and does not mislead consumers," he said.
ASIC found that Priestley did not have a proper understanding of financial services laws and that he is not competent to provide financial services.
AUTHOR
Staff Writer
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
