Adviser banned for embezzlement of funds
TheAustralian Securities and Investments Commission (ASIC)has permanently banned a New South Wales investment adviser from providing any financial advice after he misappropriated client funds.
The adviser, John Michael Higgins of Sans Souci, had been a director of Macquarie Financial Services - unrelated to the Macquarie Banking Group - in Richmond, New South Wales, and was operating as a financial planner with the group through a proper authority fromGarrisons.
An investigation undertaken by ASIC found that Higgins misappropriated approximately $2 million from clients, failing to invest these funds in accordance with their instructions.
ASIC claimed Higgins deposited clients' funds into the bank accounts of his business without their knowledge or consent, and used some of their funds for his own purposes.
ASIC also found that Higgins misrepresented to clients where their money had been invested, and failed to return client funds when requested to do so.
ASIC obtained orders in the Supreme Court of New South Wales in November 2002 permanently restraining Higgins from providing advice or dealing with client funds after he continued to act as an unlicensed financial adviser despite his proper authority having been terminated by Garrisons.
Following the action in the Supreme Court, Higgins undertook to compensate the clients who suffered financial loss as a result of his misappropriation of their money.
This follows yesterday’s banning of a South Australian financial adviser for three years after he encouraged thirteen clients into high risk 'fractional reserve banking' schemes not approved by his proper authority provider.
Recommended for you
National advice firm MiQ Private Wealth has appointed a new chief executive to lead the business through a “transformative era” after penning a partnership deal with AZ NGA earlier this month.
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
