ASIC bans dishonest Perth adviser
TheAustralian Securities and Investments Commission(ASIC) has banned a Perth-based investment adviser for three years after making false and misleading statements to investors in the sale of securities, and for acting as a representative of a non-licensed securities business.
The banning of Darren Charles Horner - effective as of August 8 - follows an investigation by ASIC into the operations of Perth-based Securinvest Accounting Services (Securinvest), which represented itself as a financial planning business.
ASIC found Horner acted as an adviser with the firm which promoted and sold interests in tax-effective investment schemes, which allowed investors to borrow the entire amount of the investment and repay the loan from an anticipated tax return.
According to ASIC, Horner made “false and misleading statements to secure the sale of securities”.
ASIC argued that “Horner made representations in relation to securities to people who may reasonably be expected to rely on them, when he did not have a reasonable basis for making the recommendations and without proper consideration of his clients' financial situation, objectives and risk profile”.
ASIC also formed the view that Horner failed to perform the duties of a representative of a dealer or adviser efficiently, honestly and fairly, and had reason to believe he will not perform these duties efficiently, honestly and fairly in the future.
Following a ruling by theAustralian Tax Office(ATO), disallowing deductions on these investments, many of Horner's more than 700 clients were required to return tax refunds to the ATO and repay loans from financiers relating to their investments.
Many investors have been awarded compensation against the principals behind Securinvest, with claims now being quantified by the Supreme Court of Queensland.
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