Banned adviser to stand trial
A formerSecuritor Financial GroupandFinancial Wisdomadviser has been committed to stand trial over allegations of dishonesty and improper behaviour stemming from anAustralian Securities and Investments Commission(ASIC) investigation.
ASIC alleges that Michael Andrew Smith of Glenalta, who was banned for life by the regulator in mid-2002, dishonestly concealed information to encourage clients to deal in the securities of Arrowlea without fully disclosing to them the commission that he was receiving.
Arrowlea was formed in October 2001 by convicted armed robber and accused fraudster Terry Norman Stephens, and went into liquidation on February 27, 2002.
Olympic gold medallist Betty Cuthbert, who has multiple sclerosis, claims she invested $200,000 in a clothing company set up by Stephens which went broke in 1998.
According to ASIC, between June 1996 and January 2002 Smith fraudulently converted client cheques intended for investment purposes for his own use or his company’s use or benefit.
Smith was director of Mossbrook and proprietor of the registered business name Mossbrook Financial Planning. Mossbrook was placed into receivership on February 8, 2002.
The charges laid by ASIC relate to the fraudulent use of in excess of $294,000.
On July 1, 2002, ASIC permanently banned Smith from acting as a representative of a securities dealer, investment adviser or holder of an Australian Financial Services Licence.
Smith has been remanded on bail to appear in the South Australian District Criminal Court on June 15, 2004.
Recommended for you
Despite industry criticisms, Financial Services Minister Stephen Jones believes the Labor government has moved the financial advice reform dial forward “significantly” during his term.
The Australian Institute of Company Directors has shared which issues are keeping financial services directors up at night, and how they compare to the sentiment of directors more broadly.
ASIC is seeking to publish firm-level data on the reportable situations and internal dispute resolution regime, in hopes that advice licensees will “lift their game”.
The Federal Court has appointed liquidators to wind up Falcon Capital and the First Guardian Master Fund, following an ASIC application.
