ASIC bans three planners
The Australian Securities and Investments Commission (ASIC) has banned three financial planners on matters related to the collapse of Westpoint Corporation.
The regulator announced that it had banned NSW man Timothy Keith Harrison of Singleton Heights, Leslie Richard Walters of Mandurah in Western Australia and Mark Anthony Corrie of Hong Kong.
In three separate announcements released to the media on Tuesday, the regulator said Harrison had been banned after an ASIC investigation found that in 2002 and 2003, he advised clients to invest in promissory notes offered by York Street Mezzanine Pty Ltd, a company associated with Westpoint.
It said that in doing so, Harrison failed to comply with the guidelines provided by Bongiorno Financial Advisers Limited, accurately disclose commissions he and Bongiorno received, properly consider his clients’ interests, properly understand the risks associated with the promissory notes offered and provide appropriate advice in relation to York Street Mezzanine.
Walters, a representative of Brighton Hall Securities, was banned after an ASIC investigation found that between 2002 and 2004, he engaged in misleading and deceptive conduct when describing Westpoint products to a client as “safe” and “guaranteed” by Westpoint’s assets, failed to conduct reasonable investigations into the risk characteristics of Westpoint products, provided inappropriate advice in relation to investing in Westpoint products and failed to provide a client with written advice of his investment recommendation within a reasonable time of the client implementing the recommendation.
ASIC said that Corrie had been banned after an investigation found that between 2003 and 2005, he advised clients to invest in promissory notes offered by Bayview Heritage Mezzanine Pty Ltd and Market Street Mezzanine No. 2 Pty Ltd — companies associated with Westpoint.
It said Corrie, who had been a representative of Dukes Financial Services, failed to advise clients that Westpoint products were high risk, adequately explain the risks associated with the Westpoint products and with mezzanine finance, give due and appropriate consideration to his clients’ risk profile, circumstances and objectives and provide appropriate advice in relation to Westpoint products, thereby breaching his duty to ensure that investments were appropriate for his clients.
AUTHOR
Mike Taylor
Recommended for you
ETF provider VanEck has announced its intention to launch a uranium and energy solution as global political agendas point to expansion in this sector.
PIMCO has announced the launch of a new active fixed-income ETF, marking its fifth active solution on the Australian market after the launch of four ETFs earlier in the year.
With the Australian advice market being a target for US private equity firms, a US advice commentator has shared lessons from his overseas experience, and why PE may be less attractive than initially expected.
Financial advisers are reminded to ensure their CPD is up to date with the Financial Services and Credit Panel making its second determination in a week after an adviser failed to meet the requirements.
