ASIC takes adviser to court
The corporate watchdog has taken a Bathurst financial adviser to court who is charged with six counts of using his position dishonestly, and one count of dishonestly obtaining financial advantage by deception.
Keith James Flowers, previously known as Nigel Keith Flowers, between 1991 and 2012 primarily provided financial services to medical and dental professions in Australia. He was the founder and controller of Flowers Financial Group, and the director of Flowers Financial Management (FFM) and 1Source Wholesale Investments.
The Australian Securities and Investments Commission (ASIC) said in 2001 Flowers and Flowers Financial Group raised seed capital to float an amalgamation of several financial planning businesses.
1Source Wholesale was utilised as the trustee company to hold funds for the proposed float and initial public offering (IPO).
ASIC alleged between June 2011 and April 2012, Flowers used his position as a director of 1Source Wholesale dishonestly, with the intention of gaining advantage for either himself or FFM, by causing the transfer/withdrawal of $179,500 of seed capital.
The watchdog also alleged that the adviser falsely claimed that $30,000 raised for the failed IPO would be returned to investors after the float was cancelled but that he instead applied the funds for his own benefit and for 1Source Holdings.
The matter has been adjourned to 15 October, 2019.
Recommended for you
With Fortnum Private Wealth and Professional Financial Services now unified under the Entireti umbrella company, CEO Neil Younger has detailed to Money Management the firm’s new direction and future expansion.
The FAAA has suggested looking offshore for overseas financial advisers to ease the adviser shortage, but are employers willing to take on the burden of workplace visas?
There may be a huge influx of alternatives coming to the market, but timing and access difficulties mean advisers can easily end up disappointed with their selection, according to Morningstar global CIO Dan Kemp.
An NSW individual has pleaded guilty to one criminal charge of providing unlicensed financial services after promoting crypto investments at national seminars.
