Shoddy advisers feel ASIC wrath
TheAustralian Securities and Investment Commission(ASIC) has banned one financial adviser and accepted an enforceable undertaking from another after ruling the pair had failed to act efficiently, honestly and fairly in their capacity as investment advisers.
Both advisers - Neil Galang and Chris Frederick - were representatives of ARG Financial Group (ARGF) and were found by the regulator to have recommended a product to clients known as the Parkview Orchard Project without reasonable basis.
ASIC banned Galang banned from acting as a financial services representative for a period of two years, and accepted an enforceable undertaking from Frederick not to act as a financial services representative for a period of three years.
The regulator was concerned that in their capacity as ARGF representatives, neither Galang nor Frederick had performed their duties as investment advisers efficiently, honestly and fairly.
ASIC ruled the pair did not consider the investment objectives, financial situation and financial needs of those investors. It also had concerns that both advisers had not provided advisory services guides to clients, and that they did not advise investors of the commissions they received from investment products they recommended, as required by the Corporations Law.
“The Corporations Law clearly provides processes for the removal from the industry of financial service advisers who do not comply with their obligations and responsibilities,” ASIC deputy executive director enforcement Allen Turton says.
AUTHOR
Craig Phillips
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