A Victorian financial adviser has been banned from providing financial services for seven years after an Australian Securities and Investments Commission (ASIC) investigation found he had breached "numerous financial services laws".
The investigation found that Scott Logan of Torquay, Victoria, the director and sole employee of Shore Capital Pty Ltd, had made numerous false or misleading representations to Shore Capital clients as the company's authorisation to provide financial services and the fees it charged.
ASIC reported that between April 2011 and June 2013 Shore Capital, trading as Coast Capital, traded in contracts for difference (CFDs) on behalf of retail clients when it was not authorised to do so.
"Shore Capital initially traded on behalf of retail clients without holding an Australian financial services (AFS) licence. It later traded on behalf of retail clients when it held an AFS licence for the provision of services to wholesale customers only," ASIC revealed.
At least three clients lost a combined total of over $38,000 through the unauthorised trading.
ASIC Deputy Chairman Peter Kell said, "The investing public needs to be able to trust those who provide financial services. ASIC will act to ensure those who behave without regard to their obligations to their clients will be removed from the financial services industry."
Shore Capital's AFS licence was cancelled on 16 October 2014 as it no longer operates a financial services business.