Melbourne adviser accepts enforceable undertaking for non-consent transfers
The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking (EU) from the director of a Melbourne based financial services provider which requires the director to stand down and relinquish his status as an authorised representative.
ASIC accepted the EU from Lotus Securities Limited director James Thomas Banfield, of Vermont South, Victoria which will prevent him from providing financial services for four years.
The EU follows an ASIC investigation that found that between August to September 2012 Banfield submitted adviser transfer forms to Netwealth on behalf of client consenting to a transfer from Wealthsure to Lotus Securities. ASIC stated that the clients had not consented to the transfer.
As a result of these actions Banfield agreed to step down as director, responsible manager and authorised representative of Lotus Securities and to have no contact with any clients of an Australian Financial Services Licensee or their authorised representative in relation to providing financial services to clients.
Banfield would also not complete, submit or lodge client documentation which involves client authority, client money, powers of attorney and application forms and will complete a recognised ethics course within 12 months.
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