An adviser from Darling Point, New South Wales, has been banned from representing a securities dealer or investment adviser for five years after his company breached conditions of its dealers licence.
TheAustralian Securities and Investments Commission(ASIC) banned Martin Lloyd-Cocks after Australian Investors Forum (AIF), a company for which he was an authorised representative and founding director, had its dealers licence suspended by order of the Supreme Court in October 2001.
AIF had promoted itself as an investment club offering clients access to participate in share floats, despite having a restricted dealers licence precluding it from holding client funds and from holding shares on behalf of clients.
Lloyd-Cocks played a major role in the management of AIF, wrote much of its promotional material and was nominally responsible for compliance. As a result ASIC found he had caused AIF, in whole or part, to breach conditions of its dealers licence and to engage in other conduct in breach of the Corporations Act.
ASIC established that Lloyd-Cocks also assisted AIF in requiring its clients to sign discretionary authorities allowing AIF to conduct transactions without any reference to the clients.
Lloyd-Cocks was also found by ASIC of helping AIF in holding client funds, again in breach of its licence conditions, that were used in part to fund its day-to-day operations.
The regulator commenced proceedings against AIF, Lloyd-Cocks and related companies and individuals in October 2001, and this action is still before the courts. AIF is now in liquidation.
Lloyd-Cocks has lodged an appeal with the Administrative Appeals Tribunal regarding ASIC’s banning decision.
