Auditor forced to deregister
Auditor Michael Charlton is the latest casualty of the ASIC's con-tinuing investigations into Feldworth Financial Services and the failed investment vehicle EC Consolidated Capital Limited (ECCL).
Auditor Michael Charlton is the latest casualty of the ASIC's con-tinuing investigations into Feldworth Financial Services and the failed investment vehicle EC Consolidated Capital Limited (ECCL).
Charlton, who was an auditor for Feldworth, has surrendered his reg-istration as a registered company auditor and has lodged notification that he will cease to act as a registered auditor.
ASIC claims Charlton did not include notice of impending litigation against the firm within his audit report.
Feldworth Financial Services was the subject of litigation which awarded damages late last year to investors who lost part of their portfolios when advisers employed by Feldworth recommended they in-vest in ECCL and its parent company (also now defunct), AG Consoli-dated Limited (AGCL).
Meanwhile, ASIC is continuing investigations into the conduct of fi-nancial planners involved in recommending investments in either ECCL or AGCL. As reported in Money Management in February, three Adelaide-based advisers were banned as a result of ASIC inquiries in the past year.
A source at ASIC has indicated that at least one of these advisers has appealed the decision in the Administrative Appeals Tribunal.
Another Sydney-based planner will also face allegations by ASIC in relation to the affair.
The Victorian branch of ASIC is set to wind up an inquiry into ECCL's affairs, ac-cording to the source, which was launched as a joint taskforce with the Australian Federal Police, following the collapse of ECCL and AGCL.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
