As the 2023–24 financial year comes to a close, Money Management reviews the financial advisers who fell under ASIC’s enforcement spotlight.
The regulator issued enforcement action against a hefty amount of advisers in the financial year. Common problems identified by ASIC include not being a fit and proper person, failing to act in the best interest of clients, false and misleading representations, and misleading and deceptive conduct.
The regulator has stated its ongoing enforcement efforts are to improve standards across the financial advice industry.
“Financial advisers must act with honesty and integrity in their dealings with clients. ASIC may ban a financial adviser if it has reason to believe that they are not a fit and proper person to provide financial services, or that they are likely to contravene a financial services law.”
Money Management takes a look at some of the most notable cases in FY24.
July 2023
ASIC bans Sydney director over unlisted share offers
The regulator permanently banned a Sydney-based director, David Henty Sutton, and cancelled the Australian financial services licence (AFSL) of his company McFaddens Securities after concerns about him making offers of investment in unlisted shares. He was also disqualified from managing corporations for five years.
August 2023
Sydney adviser receives permanent ban and AFSL cancellation
Donald James Cuthbertson, a Sydney adviser, was permanently banned from providing any financial services and had his AFSL cancelled. ASIC found Cuthbertson was not a fit and proper person to provide financial services after he misappropriated investor funds and made false or misleading representations, among other concerns.
September 2023
Perth adviser receives jail time for $1m theft
Western Australian adviser, Mark Raymond Sebo, stole over $1 million from his clients to fund a gambling addiction and received a five-year prison sentence in the Perth District Court in September last year. Sebo had pleaded not guilty to the accusations of making 36 transactions over a 10-day period in July 2019 from his clients’ self-managed superannuation funds (SMSFs) to his online accounts. He was later banned in February 2024 following his convictions of fraud.
October 2023
‘Reprehensible’ former Melbourne adviser sentenced over $10m theft
One month later, Terence ‘Rio’ Nugara, who pled guilty to stealing $10 million from his clients, was sentenced to nine years and 11 months’ jail. It was alleged he used client funds over several years for his own purposes, spending it on luxury overseas trips, race cars, boats and helicopters.
November 2023
Adviser banned for attending AFL Grand Final sees sentence reduced
Mark Christopher Babbage, who was banned for 10 years for breaching COVID-19 lockdown rules to attend the AFL Grand Final in Perth, saw his banning reduced to six years in an appeal.
December 2023
Adviser Pamela Anderson sees two-year ban upheld by AAT
The final month of 2023 began with Victorian adviser, Pamela Anderson, seeing her two-year ban from providing financial services for two years affirmed by the Administrative Appeals Tribunal (AAT).
Former Brisbane adviser charged with misleading ASIC
Kristofer Ridgway, a former Brisbane adviser who was permanently banned by ASIC in April 2023, appeared in court on 14 December and was charged with two counts of providing false or misleading information to the regulator. He was an authorised representative of AFS licensee Shaw and Partners from 2015 to 2021 who recommended his clients invest in a range of international unlisted shares sourced by McFaddens Securities.
Queensland adviser’s promise of 8 per cent returns leads to permanent ban
Not long after, Gold Coast adviser Delan Pagliaccio, who told his clients he could guarantee them 8 per cent returns, was permanently banned from providing any financial services.
Former director of Queensland advice firm receives seven-year ban
The month ended with Mark Andrew Cooper, the former sole director and chief financial officer of a Brisbane-based firm, receiving a seven-and-a-half-year ban after he engaged in conduct in relation to financial services that was misleading and deceptive.
January 2024
Former Melbourne director faces prison for allegedly breaching 10-year ban
The new year began with ASIC filing a contempt of court application in the Federal Court against Joshua David Fuoco, a Melbourne director, for allegedly carrying on five financial services businesses despite being banned for 10 years. If found liable, the Federal Court can impose penalties which may include a fine, asset sequestration, or imprisonment.
February 2024
Former Melbourne adviser sees court-enforceable undertaking
ASIC accepted a court-enforceable undertaking from a former Melbourne adviser, Shivdeep Jaidka, after he allegedly failed to comply with s961B and s961G of the Corporations Act in relation to SMSF advice.
March 2024
Queensland adviser receives permanent ban over dishonest conduct
The regulator permanently banned Queensland-based adviser Shane Rose from providing any financial services over dishonest conduct relating to clients’ SMSFs.
April 2024
Former Sydney adviser charged with dishonest conduct
Former Sydney financial adviser, David Valvo, was charged in court with 12 counts of dishonest conduct. Each offence of engaging in dishonest conduct carries a maximum penalty of 15 years’ imprisonment, ASIC said at the time.
May 2024
Former adviser banned for multiple breaches
ASIC banned former adviser Gawad Nabi for three years, after he breached various financial services laws, failed to provide appropriate advice, and provided a disclosure statement to clients that contained misleading or deceptive statements.
Queensland adviser permanently banned after fraud conviction
Later that month, former Sunshine Coast adviser Brett Andrew Gordon was permanently banned from providing financial services and engaging in credit activities after he was convicted of fraud offences.
June 2024
Victorian AFSL sees licence cancelled and MD banned
Most recently, ASIC cancelled the AFSL of Victorian fund manager Guildfords Fund Management and banned its managing director Robert Payne for four years. The regulator said it found “significant and systemic failures of oversight and compliance” in the firm’s provision of financial services.
