Securities representative banned for life
A former securities representative has been banned for life by theAustralian Securities and Investments Commission (ASIC)for transferring client funds into his own account, using the funds and providing incorrect statements to clients.
Timothy Myles Austin, from the Newcastle region, was employed by Williamson Chaseling Austin Financial Planning Services, as Trustee for the WCA Unit Trust and as a securities representative of Novatax Pty Limited.
Between June 2001 and January 2002 he transferred about $600,000 of a client’s money into an account controlled by himself, without authority. Austin then used the funds, without authority.
Austin has entered into an enforceable undertaking with ASIC, agreeing to the permanent ban from acting as a representative of a securities dealer or an investment adviser, from applying for an Australian Financial Services (AFS) licence and from being an authorised representative of such a licence holder as required by law.
Austin entered into the enforceable undertaking after voluntarily supplying information to Novatax, which resulted in an ASIC investigation.
He has since arranged for full compensation of the client’s losses and has also voluntarily repaid in full a further $353,000 to another client, which he transferred from one client’s account to another.
“A permanent ban is appropriate given the seriousness of the conduct involved,” ASIC enforcement director Allen Turton says.
AUTHOR
Nicole Szollos
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