ASIC bans planner
Former National Australia Bank investment adviser Paul John Borella has been given a five year ban by the Australian Securities and Investments Commission (ASIC) from acting as a representative of a dealer or an investment adviser.
The ASIC investigation found that Borella had advised clients to invest in a company in which he was both a director and shareholder. The investment was not authorised by National Australia Bank (NAB) and investors lost a total of $235,000.
ASIC Victorian director of intermediaries and consumers Sean Hughes says ASIC are aware of eight to ten investors who were willing to participate in the investigation, however he says there could be others.
Borella resigned from the NAB in September 1999 and it is believed he was recommending the unauthorised investment for up to 18 months to two years before this.
The NAB referred their concerns about Borella to ASIC earlier this year, and a formal referral was placed in June. The bank provided information during the investigation and arranged compensation for the losses experienced by clients.
ASIC Victorian regional commissioner Sue Carter says the ban was imposed because Borella's behaviour was not in line with the high standards of integrity and competence expected and required under law.
Carter says "the banning order reflects ASIC's determination to ensure that investment advisers operate within the law and do not abuse their position of power."
The investigation is not yet at a close, says Hughes.
The banning comes after recent news that ASIC had banned a record number of investment advisers, 50 in 1999/2000, compared to just 17 the year before.
According to the ASIC's annual report, the investment watchdog banned 16 advisers for life and the other 34 for a varying number of years.
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