ASIC bans Hartleys adviser over Ali case
TheformerHartleysadviser, Christopher Roderic Martin, at the centre of last year’s infamous Ali case, has finally been banned by theAustralian Securities and Investments Commission (ASIC)from acting as a representative of a dealer or investment adviser for four years.
ASIC found that Martin, a former authorised representative of licensed securities dealer and stockbroker Hartleys, had not performed his duties as an authorised representative honestly or fairly when acting as a securities adviser for Rahmet Ali, a Fijian businessman, between 1997 and 1998.
Martin’s banning follows the well-publicised court decision in April 2002, when Hartleys was ordered to pay over $1 million to Ali as damages and compensation for what the court called Martin’s ‘reckless’ trading actions.
An ASIC investigation into Martin’s conduct found he had recklessly represented investment returns and risk to Ali, sold shares of Ali’s despite instructions to the contrary, and put himself in a position of a conflict of interest by undertaking transactions for Ali that would benefit Martin’s own father.
Martin’s banning comes at the same time that a former Queensland financial adviser, 41-year-old Daryl McGuire, was sentenced to three years imprisonment on fraud charges, to be released after 12 months on a $3,000, four-year good behaviour bond.
ASIC alleged that McGuire causedBT Funds Managementto redeem units valued at over $200,000, though he only had authority to redeem part of this amount.
The regulator further alleged that McGuire’s conduct led to his client being deprived of over $180,000 of the redeemed amount.
Recommended for you
Two commentators have shared why cultural alignment can be the biggest deal breaker when it comes to advice M&A and how to ensure a successful fit.
With an abundance of private market options coming to market, due diligence becomes increasingly important as advisers separate the wheat from the chaff, adviser Charlie Viola has said.
The Treasury has launched a consultation into how the $47 million special levy for the Compensation Scheme of Last Resort will be funded.
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
