ASIC bans Melbourne directors
Two directors of an investment advisory group have been banned from managing corporations for up to 10 years after theAustralian Securities and Investments Commission(ASIC) obtained orders for their banning in the Supreme Court of Victoria.
Ashok Kumar Pal and Kerry Janette Nixon, formerly directors of Macquarie Advisory Group (MAG) — which is unrelated to the Macquarie Bank - have been banned from managing any corporation until September 21, 2010 and September 21, 2005 respectively.
The banning relates to the loss of $3 million from clients of MAG, many of whom were retirees, the watchdog says. The clients were advised to invest in a number of unauthorised investments.
Pal has also given ASIC an enforceable undertaking that he would not provide any investment advice to any person, deal in securities in anyone’s name, or provide any service which required having an Australian Financial Services Licence.
Nixon is also banned from acting as a representative of securities dealers or investment advisers until September 21, 2005. Another director of MAG, Anthony James Howarth, was also banned by ASIC last year from engaging in similar activities until July 10, 2010.
“ASIC will continue to take action to protect the public from company directors and investment advisers who fail to meet the high standards of integrity that is required of them,” ASIC director enforcement Jamie Orchard says.
Meanwhile in an unrelated case, another Melbourne investment company director has had a five year ban imposed on him by ASIC.
Norman Peter Glenn of Sunbury, Melbourne, has agreed that for five years backdated from November 1 of last year, he will not act as a representative of a securities dealer or investment adviser, hold a proper authority from a dealer or investment adviser, nor apply for a dealers licence, investment advisers licence or the equivalent AFS licence under the Financial Services Review Act.
Glenn, who was the sole director of Capital Gateway, promoted investments in the Melbourne-based Lifestyle Property Group, a residential property development scheme which later failed. Following an ASIC application in the Federal Court, 54 companies within the group were wound up in August 2000.
Glenn had breached the Corporations Act by giving investment advice to clients without being appropriately licensed, by making securities recommendations without a reasonable basis and by failing to disclose the commissions and fees Capital Gateway would receive as a result of clients investing in the Lifestyle Group.
Glenn has held a proper authority with IFMA Investment Services, but this company was in no way linked with the Lifestyle Property Group.
“ASIC will take action to protect investors from advisers who fail in their legal duties and obligations,” Orchard says.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
