ASIC bans Infocus adviser
The Australian Securities and Investments Commission (ASIC) has banned David Radovan of Donnybrook, Western Australia, from providing financial services for five years after an investigation found he had engaged in misleading and deceptive conduct.
An ASIC investigation commenced in July 2009 found that Radovan, while acting as an authorised representative of Infocus Securities Australia, recommended financial products without a reasonable basis for that advice and failed to consider the personal circumstances of his clients prior to making recommendations.
The breaches occurred while Radovan was working at an Infocus branch in Northbridge between 25 July, 2006 and 16 October, 2008.
The investigation found Radovan engaged in misleading and deceptive conduct and failed to provide clients with documents required under the Corporations Act, such as Statements of Advice and Product Disclosure Statements.
ASIC also found Radovan overexposed client portfolios to higher risk, niche products in breach of Infocus’ policies, and recommended that clients invest by utilising investment loans, including margin loans.
Radovan’s failure to consider his clients’ personal circumstances and objectives resulted in them being overexposed to risk and overgeared, ASIC found.
It was also likely Radovan would continue to fail to comply with financial services laws in the future, ASIC found.
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