AAT reduces ban for ex-Macquarie representative
The Administrative Appeals Tribunal (AAT) has reduced a ban from providing financial services imposed by the regulator against Julian Hayes, a former representative of Macquarie Equities and Macquarie Investment Management, from three years to one year.
However, a submission from Hayes to replace the banning order with an enforceable undertaking was rejected by AAT deputy president Rodney Purvis QC.
The Australian Securities and Investments Commission (ASIC) had originally banned Hayes for three years in February 2006 after its investigation found he had failed to provide nine clients with a Statement of Advice in a timely manner after offering them superannuation switching advice.
Furthermore, ASIC contended that Hayes had not properly assessed his clients’ personal circumstances before issuing such advice.
In handing down its ruling, the AAT found Hayes had not discharged his duties properly under the Corporations Act and he had been derelict in his duties toward his employer and his clients by not complying with the fundamentals of financial services advice.
While the AAT reduced the length of the ban imposed on Hayes it did reinforce the importance of banning provisions in the event of misconduct by financial services representatives.
In its ruling, the tribunal stated that “a banning order is published and involves a degree of personal and general deterrence. An enforceable undertaking is no more than a restatement of legal obligations and does not satisfy the needs of a deterrent.”
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