Sydney adviser permanently banned
An ex-financial adviser withColonial Financial Serviceshas been permanently banned from acting as a representative of a securities dealer for depositing clients’ funds into his own bank account.
Robert William Thorn of Kings Langley, New South Wales, was an authorised representative of Colonial until June 8 of this year, when he resigned and had his proper authority cancelled. He was also an insurance agent withNorwich Unionuntil his agency agreement was terminated by them in April 2001.
TheAustralian Securities and Investments Commission(ASIC) found that Thorn had misused client funds, provided false information to clients and abused his position of trust.
The watchdog says in February 2000, Thorn advised a client to transfer funds from an investment that he said was not performing well, into another investment bond. The client subsequently gave Thorn authority to transfer $38,250 into a new investment bond. However, Thorn then cancelled this bond and transferred the money into his personal bank account.
Thorn was questioned by the client about the whereabouts of his money. He responded by contacting a friend, who was also a client, and recommended he restructure his investments. This client then gave Thorn a bank cheque for $39,850 which Thorn used to repay the original client.
According to ASIC, the second client has since been repaid his funds.
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