ASIC permanently bans man for spruiking



The Australian Securities and Investments Commission (ASIC) has banned permanently John Dimitropoulos of Seven Hills, New South Wales, from financial services and credit in connection with property and self-managed superannuation fund (SMSF) spruiking.
Dimitropoulos' banning arises from ASIC's ongoing investigation into a property and self-managed superannuation fund (SMSF) promoting group, which includes the companies formerly called Heritage Financial Solutions Australia Pty Ltd (in liq) and Sunpac Finance Pty Ltd.
Additionally, at all relevant times Dimitropoulos was the sole director of Sunpac Finance and while he was never appointed as a director of Heritage Financial Solutions, the regulator found that he had been an integral part in the management of Heritage Financial Solutions.
Also, Dimitropoulos was found to be “likely to contravene credit legislation and financial services law in future”, ASIC said.
The ASIC’s investigation proved that between July, 2010, and mid-2013 he was engaged in a range of contraventions under financial services and credit laws. In particular, he:
- Made false statements to ASIC in Sunpac Finance’s annual compliance certificates about Sunpac Finance’s compliance processes and procedures
- Was involved in Sunapac Finance and Heritage Financial solutions’ breaches of their general conduct obligations as credit licensees
- Was involved in Hertitage Financial Solutions carrying on a financial services business without a license; and
- Engaged in conduct that demonstrated a fundamental lack of understanding of and regard for compliance and law
ASIC deputy chair Peter Kell, said: “Spruikers who recommend people invest in property via SMSFs, or facilitate such an investment, and who do not have an Australian financial services licence are breaking the law.
ASIC made its decision in June and Dimitropoulos filed for its review in the Administrative Appeals Tribunal (AAT), together with an application seeking a stay of the banning decision and a confidentiality order.
In September, AAT informed it had refused the application.
Recommended for you
ASIC has issued infringement notices to two AFSLs over financial advisers providing personal advice while they were unregistered.
Australian retirees could increase their projected annual incomes by as much as 51 per cent through comprehensive financial advice, according to a Vanguard study, but cost continues to be an issue.
AMP has announced a senior appointment to its North leadership team, reinforcing the firm’s commitment to the advice industry.
Despite the financial adviser exam being rooted in ethics, two professional year advisers believe the lack of support and transparency from the regulator around the exam is unethical.