ASIC permanently bans Brisbane financial adviser
The Australian Securities and Investments Commission (ASIC) has permanently banned Brisbane financial adviser, George Karakatsanis, from providing financial services for engaging in "misleading and deceptive conduct".
Additionally, ASIC found that Karakatsanis, who was an authorised representative of Protect Ensure between 2012 and 2014 and has worked as an authorised representative of various Australian financial services licencees since 2003, had engaged:
- In conduct that was false and misleading by making false statements about the financial products;
- Deliberately misled clients so that they did not understand the basic features of the financial products he was recommending they invest in;
- Failed to properly disclose that investor funds were being invested in Protect Ensure and thus constituting a direct conflict of interest;
- Failed to act in his clients' best interests;
- Failed to provide appropriate advice; and
- Failed to provide statements of advice (SOA).
ASIC also found that, as a consequence of his actions, the clients' funds had been used improperly, such as to pay Protect Ensure's business related expenses.
According to the regulator, Karakatsanis was also not of good fame and character which made him unsuitable to provide financial services.
ASIC deputy chairman, Peter Kell, said: "Mr Karakatsanis's conduct falls far short of the high standards expected of those in the financial services industry. ASIC will continue to protect consumers from advisers who engage in misleading conduct and place their interests above those of their client".
He has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
In 2014, ASIC also cancelled AFS licence of Protect Ensure as a result of the company not having adequate financial resources to provide the services covered by the licence and in 2015 Protect Ensure was placed into liquidation.
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