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
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
