Multi-agent restrained from deceptive conduct
A Melbourne-based insurance multi-agent has been restrained from engaging in any further misleading or deceptive conduct in connection with any financial services he supplies.
A Melbourne-based insurance multi-agent has been restrained from engaging in any further misleading or deceptive conduct in connection with any financial serv-ices he supplies.
The Australian Securities and Investments Commission (ASIC) was granted the in-terim orders against David Young which also included an order freezing funds in bank accounts and investment bond accounts identified as being used or con-trolled by Young.
ASIC alleges the former agent of National Mutual and Norwich Union engaged in misleading and deceptive conduct by paying between $150,000 and $200,000 of cli-ents superannuation funds into investment bond accounts he owned or controlled. It says the superannuation money may be lost.
The investment watchdog also alleges Young changed clients' addresses to his own address or post office box so that they did not receive correspondence sent to them by National Mutual and Norwich Union.
ASIC says it appears the clients agreed to have their superannuation funds rolled over from one superannuation fund to another. Rather than paying the funds into a new superannuation fund, ASIC alleges Young paid the funds into or-dinary investment funds he owned or controlled. According to ASIC, Young then had the clients' insurance and superannuation correspondents redirected to his own account.
"Despite strict limitations or permissable acccess to superannuation benefits, it appears that the rollover cheques were deposited into an ordinary investment account," says ASIC program manager of the investments and consumers program, Jane Frawley.
Both of the life companies involved initially brought the matter to ASIC's at-tention and were assisting in the investigation.
The case has moved ASIC to send out a warning to investors who have used an agent to roll over superannuation to check with the funds in which they are sup-posed to be invested.
"ASIC urges all clients to take responsibility for their own money and not put all of their trust into their superannuation or insurance agent," Frawley says.
"Clients should ask to see records of the transactions carried out in their name and should receive regular reports about the status of their investments."
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