ECCCL failure claims third adviser
A third Adelaide-based financial adviser has been banned by ASIC in relation to the failed investment vehicle EC Consolidated Capital Limited (ECCCL).
Peter John Astill, a former securities representative with Feldworth Financial Services and Grosvenor Securities, was banned from acting as a representative of an investment adviser or securities dealer for six years.
Astill invested around $510,000 of his clients' funds in ECCCL, which collapsed in mid-1997, and $250,000 in ECCCL's parent company, AG Consolidated Limited (AGCL).
ECCCL was wound up following a petition by ASIC expressing concerns that the company was not being operated in the interests of shareholders, and strong doubts over whether the company was solvent.
An investigation by ASIC found that Astill had no reasonable basis for recommending his clients invest in either ECCCL or AGCL, and that he did not possess the appropriate level of competency in discharging his duties as a securities dealer.
Two other former representatives of Sydney-based Feldworth Financial Services and Melbourne-based Grosvenor Securities have also been banned by ASIC in relation to investments in ECCCL.
In April last year another Adelaide-based adviser, Robbert Jan Klomp, was banned for life after ASIC found that he had not performed his duties efficiently, honestly or fairly in relation to recommendations that his clients invest around $1.3 million in ECCCL and $300,000 in AGCL.
In August last year, Gregory John Daly, also based in Adelaide, was banned for four years after Daly's clients followed his recommendations to invest about $517,000 in ECCCL and $112,000 in AGCL.
ASIC is continuing to investigate further cases resulting from the collapse of ECCCL, and more advisers are expected to be charged in future.
Last December, 48 retirees who were instructed by representatives of Feldworth Financial Services to invest money in ECCCL successfully sued Feldworth, its principal Hans Felden, and Perpetual Trustees. Felden has since handed in his security-dealer's licence.
After ECCCL was wound up in 1997, director Anthony Senese was also ordered to surrender his passport to then-ASC.
Recommended for you
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
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.
