Two financial services reps cop five-year ban
A financial services representative in Queensland and another in NSW will be unable to work within financial services for five years following a ruling by the Australian Securities and Investments Commission (ASIC).
Queenslander Byron Lye was banned after ASIC found he had been providing financial services advice despite not being authorised to do so.
From March 2004 until June 2005, Lye worked for Queensland-based company Money Matters Financial Solutions and was authorised to provide product information and general financial product advice.
However, ASIC found that during this time Lye provided personal financial product advice to clients in relation to investing in four unlisted public companies.
Not only had Lye provided clients with application forms and payment instructions to enable them to acquire interests in the Hillston Grove Vineyards project, but he also obtained written authorisation from clients to sell their interests in the venture. Lye sold two units in Hillston Grove as an agent for a client as well.
Despite 22 years of financial service experience, ASIC believed Graham Huckel from NSW posed a significant risk to members of the public.
As a former authorised representative of Elm Financial Services, Huckel had repeatedly breached the Corporations Act.
According to ASIC’s investigation, Huckel made false representations to his clients regarding the security of the investments he was recommending and failed to consider the specific investment needs of his clients.
It is alleged that Huckel made offers to members of the public to invest in an unregistered managed investment scheme and failed to provide Statements of Advice to his clients in some instances.
ASIC deputy executive of enforcement Allen Turton said the harsh penalties were examples of the tough line the commission takes with financial services licensees found to be neglecting their duties.
“The public is entitled to expect a high standard of professionalism and competence from those who work in financial services, and ASIC will take appropriate action against those found wanting,” Turton said.
Recommended for you
Insignia Financial is targeting its salaried financial advisers increase their revenue per adviser by 62.5 per cent over the next five years.
AWAG and Teaminvest Private Group have teamed up to offer a succession lending fund to help advice principals navigate succession planning and enjoy their retirement.
LGT Crestone chief executive Michael Chisholm believes the firm was chosen to acquire Commonwealth Bank’s personal advice arm due to its strong private market capability.
Advisers will now be able to tap into global markets on the platform through international signature managed accounts from global managers like T. Rowe Price and Lazard.
