ASIC bans adviser over Wattle Group

The Australian Securities and Investments Commission (ASIC) has banned Sydney-based finan-cial adviser Howard Owen for two years.

The Australian Securities and Investments Commission (ASIC) has banned Sydney-based finan-cial adviser Howard Owen for two years.

ASIC says Howard Jeffrey Owen was banned following an investigation of his role in promoting investment in the Queensland-based Wattle Group, a failed pyramid investment scheme. ASIC reported to federal parliament last year that the Wattle scheme had raised $130 million from 2700 people.

ASIC says Mr Owen failed to adequately research the viability of investments in the Wattle scheme before recommending it to his clients. Owen had "not acted efficiently, honestly and fairly and he fell short of the professional standards required of a representative in the securities industry", ASIC says.

In promoting Wattle, he had also acted outside the scope of the conditions imposed on the deal-ers licence of Australian Tea Tree Management, for whom he was a representative from June 1997 to March 1999.

Further, Owen had failed to fully disclose financial benefits exceeding $600,000 received both by himself and third parties as a consequence of his clients investing in Wattle between Decem-ber 1995 and March 1998.