TheAustralian Securities and Investments Commission(ASIC) has banned a Queensland-based adviser for investing $1.3 million of client assets through an unlicensed Philippines stockbroker later found to be a boiler room operation.
Brisbane-based Ronald Moore has been barred from acting as a representative of an investment adviser or a securities dealer for three years following his involvement from early 1998 in the purchase of shares in overseas companies known as Execunet, eSat and ECS Investments on behalf of clients.
These purchases, which were conducted through Moore’s previously licensed securities dealer firm Monitored Investment Services, resulted in some of the 32 clients affected having up to 60 per cent of their investment portfolios exposed to these shares.
ASIC’s investigations revealed many of the investments made by Moore were not consistent with the objectives, financial situation and particular needs of the clients, with many of the clients retired or approaching retirement, and whose investment portfolios were mainly contained in superannuation funds.
In some instances, the regulator found shares were acquired without express client knowledge or consent, but rather under the authority of a discretionary trading arrangement with Moore.
“ASIC will act to protect the interests of investors by removing from the industry, financial advisers who fail to act efficiently, honestly and fairly”, ASIC deputy executive director of enforcement, Allen Turton says.
