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
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.