A former financial adviser and authorised representative of Newstar Securities Pty ltd, Roger Charles Gordon, has been banned by the Australian Securities and Investments Commission(ASIC) from providing financial services for eight years.
The regulator announced the banning of Gordon, of Tea Tree Gully, South Australia, yesterday.
ASIC said Gordon was an authorised representative of Newstar Securities Pty Ltd from October 7, 2005, until August 28, 2007, when the company was wound up, and responsible officer from September 9, 2005, to August 28, 2007.
ASIC determined that Gordon did not comply with financial services laws by:
> failing to disclose to clients that he and Newstar Securities, as well as another authorised representative, were associated with the managers of recommended managed funds, and in some cases had an interest in the schemes; and
> acted in a misleading and deceptive manner by providing Statements of Advice to clients between June 13, 2006, and June 28, 2006, which recommended that they invest in a managed investment scheme, the fund manager of which had been deregistered and was incapable of issuing interests in the scheme.
ASIC alleged that, specifically, Gordon did not note the company’s deregistration when he conducted a due diligence check and included the investment scheme in Newstar Securities’ approved product list.
ASIC also found that Gordon, in his capacity as a responsible officer and sole key person, failed to ensure Newstar Securities complied with licensing conditions and failed to ensure that Newstar Securities took reasonable steps to ensure that an authorised representative of Newstar Securities complied with financial services laws.
ASIC said it believed Gordon could not be relied upon to comply with financial services laws and had taken the banning action to protect the community and maintain public confidence in the financial services industry.
The regulator’s statement added that Gordon is an undischarged bankrupt and has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
