Victorian AR charged with providing unlicensed product advice
A Victorian authorised representative (AR) has been charged with engaging in dishonest conduct in the course of carrying on a financial services business and providing unlicensed personal financial product advice.
Nizi Bhandari, of Bundoora, Victoria, was an AR at The Australian Dealer Group Pty between November 2017 and December 2020, a licensee that helped consumer find lost superannuation and consolidate super accounts.
He was also the sole director, responsible manager and key person under the firm’s AFS licence for the same period.
He had previously been permanently banned from providing financial services by ASIC in March 2021.
It was alleged that between January 2019 and March 2020, Bhandari:
- Provided seven consumers with personal financial product advice that neither he nor The Australian Dealer Group was authorised to provide;
- Encouraged 15 consumers to tell their super funds that they were not working, had permanently retired, or were working less than 10 hours per week to enable them to access their superannuation when they were not entitled to;
- Told 15 consumers that they could access their superannuation based upon having reached preservation age when he knew that those consumers also had to be retired or working less than 10 hours per week in order to have such access;
- Told three consumers to ask their employer to pay their employer superannuation contributions into a superannuation account other than the consumer’s super account to prevent the administrator of that super fund from becoming aware that the consumer had made a false statement about their work status;
- Told one consumer that he would describe the consumer as retired to the superannuation fund to enable the consumer to withdraw his superannuation, when he knew the consumer was still working; and
- Told one consumer that the consumer was ‘technically’ retired when he knew that the consumer had not retired.
The maximum penalty for an individual person found guilty of engaging in dishonest conduct in the course of carrying on a financial services business is between 10 to 15 years’ imprisonment, a fine of $945,000, or both.
The maximum penalty for an individual person found guilty of providing unlicensed personal financial product advice while providing financial services on behalf of a person who carries on a financial services business is five years’ imprisonment, a fine of $126,000, or both.
The maximum penalty for an individual person found guilty of engaging in dishonest conduct in the course of carrying on a financial services business is between 10 to 15 years’ imprisonment, a fine of $945,000, or both.
The matter was next listed for mention on 4 October, 2022 in the Magistrate’s Court of Victoria.
This matter was being prosecuted by the Commonwealth Director of Public Prosecutions after an investigation and referral by the Australian Securities and Investments Commission (ASIC).
AUTHOR
Laura Dew
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