AAT backs Commonwealth Financial Planning ban decision
The Administrative Appeals Tribunal (AAT) has affirmed the Australian Securities and Investments Commission's (ASIC's) decision to ban former Commonwealth Financial Planning (CFP) adviser Don Nguyen from providing financial services for seven years.
The decision was handed down on 14 March 2012 after the AAT found that Nguyen failed to comply with relevant sections of the Corporations Act 2001 in relation to the provision of financial services.
According to ASIC, the "decision to hand a seven-year ban was appropriate for the protection of the public, and maintaining public confidence in the financial services profession".
Nguyen was employed by CFP as an authorised representative between 1 October 2003 and 6 July 2009.
Following an ASIC investigation, he was disqualified from providing financial services in March 2011.
AAT affirmed ASIC's findings that Nguyen failed to provide a reasonable basis for advice, a statement of advice, product disclosure statements, or additional information when recommending clients switch from one financial product to another.
The tribunal also affirmed that Nguyen made statements or forecasts that were misleading, false or deceptive.
AUTHOR
Staff Writer
Recommended for you
Proposed legislative changes to safe harbour duty could result in advisers having reduced professional indemnity costs, a joint submission by seven major licensees said.
With 66 per cent of newly established advice licensees being sole advisers, what are the risks and legal ramifications to consider when taking the plunge into self-licensing?
Despite its popularity, only 1 per cent of financial advisers say they have often discussed cryptocurrency with clients, CoreData said, fuelled by concerns of heavy legal expenses if the product goes wrong.
AFCA and the CSLR have signed a memorandum of understanding as to how they will support an efficient financial services sector via the scheme.
