ASIC suspends Aussie Rob's AFSL
The financial services regulator has placed a one-year licence suspension on Lifestyle Investor Services (LIS), a Gold Coast-based financial advice and options trading practice owned by Robert Wilson, who is otherwise known in the industry as 'Aussie Rob'.
LIS' Australian financial services licence was suspended by the Australian Securities and Investments Commission (ASIC) due to concerns that the practice had not complied with financial services laws and the conditions of its enforceable undertaking (EU).
In August 2011, ASIC accepted the EU from the practice, which followed an investigation into "misleading and deceptive conduct in the marketing of share trading software".
ASIC found that statements made by Wilson and the two companies in marketing the software were misleading and deceptive.
"These statements included: 'Writing covered calls is the same as 'Share Rental' or renting out real estate'; 'Options trading is easy' and 'Returns of 5-10 per cent per month and 60-120 per cent per year can consistently be achieved through use of Lifestyle Options - Share Rental'," ASIC revealed in its statement at the time of the EU.
According to the regulator, LIS failed to notify ASIC within five days of Scott Goold resigning as the responsible manager of the business and of details relating to Goold's replacement.
"LIS failed to maintain the competence to provide financial services following Goold's resignation as responsible manager, with no person appointed to replace him in the role and with Goold unable to adequately perform his role from overseas," ASIC said.
However, ASIC revealed it had reason to believe that LIS would not comply with its obligations under the law, based on concerns by Goold alleging serious issues about the management of the practice and its finances, as well as concerns subsequently identified about Goold's fitness to be a responsible manager.
LIS' authorised representatives will need to seek another Australian financial services licensee should they wish to continue trading, according to the regulator.
The practice was licensed to provide general financial product advice and deal in products including derivatives, foreign exchange contracts and securities.
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.
