Accountant’s ban highlights need to be aware of regulations: Lawyers
Financial services sector workers need to be aware of the legal and regulatory framework in which they both work and wish to work in.
In the wake of the banning of accountant, Dimitri Amargianitakis, who was found to have repeatedly breached laws by providing services without appropriate licences, Mills Oakley Lawyers partner, Dan Mackay, said, it was important for those working in the sector to understand the laws governing it.
As previously reported, Amargianitakis was found to have been providing financial services without an Australian Financial Services Licence (AFSL), has had an eight-year ban cut by two years on appeal.
"If Mr Amargianitakis' evidence is accepted, it is sobering to think that he was completely oblivious to the fact that he engaged in repeated and serious contraventions of financial services laws over a period of years, resulting in $32 million of investor funds being lost or at risk," Mackay said.
"This case highlights the need for all professionals, particularly accountants, to be aware of the legal and regulatory framework in which they both operate and want to operate. This is of particular importance where their business is also involved or plans to be involved in property investments or entrepreneurial activity beyond its core services. The risks of failing to be aware of the relevant legal and regulatory requirements are serious — there is the potential for professional and reputational damage, banning or professional suspension, and possible compensation claims.
"If you are planning to develop a new line of business, you should seek appropriate advice up front and get it right. If you are concerned about your current business activities or want to better understand the complex regulatory framework, talk to someone who knows.
"You should also be aware that the ‘accountant's exemption' which allows recognised accountants to advise on the establishment of a self-managed superannuation fund ends on 30 June 2016, and you will need a limited licence after this date to undertake those activities."
AUTHOR
Nicholas O'Donoghue
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