ASIC: IFA adviser not so independent
A financial planner has been banned for five years after making product recommendations to clients resulting in financial benefits to a company of which she was the sole director.
The adviser, Melanie Hutson, was an authorised representative ofIFA Securitiesin Sydney from March 2002 to February 2003 though she now resides in Hobart, Tasmania.
AnAustralian Securities and Investments Commission(ASIC) investigation found that throughout 2002 Hutson made recommendations to seven clients to invest in two Panamanian registered companies, Global Placement Strategies Corporation (GPSC) and Veridian Corporation (Veridian).
Some of these investments were made through an Australian registered company - Strategic Placements Consultancy - of which Hutson was the sole director.
The ASIC investigation found that Hutson did not conduct sufficient enquiries about the suitability of investments in GPSC and Veridian prior to making the recommendations to her clients.
ASIC also says she did not consider the needs of her clients when making the relevant recommendations.
Throughout 2002 Hutson's clients invested over $1.4 million in GPSC and Veridian, and although some of these funds were returned to investors most have yet to mature.
As a result, ASIC found Hutson had failed in her duties as an authorised representative of a securities dealer to act honestly, efficiently and fairly.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
