ASIC brings proceedings against NSW adviser
The Australian Securities and Investments Commission (ASIC) has commenced proceedings against financial adviser Graeme Walter Miller and his related businesses, seeking to prevent him from providing financial services or managing corporations.
The relevant companies were CFS Private Wealth, Combined Financial Solutions and BDM Asia Pacific. The latter was formerly known as CFS Corporation, which was deregistered.
The regulator alleged that Miller:
- Recommended to CFS Private Wealth’s clients that they establish self-managed superannuation funds (SMSFs) and use those funds to invest in CFS Corporation, of which he was a director;
- Used investor funds for personal use and to repay other investors in CFS Corporation;
- Failed to keep proper records of clients’ investments in CFS Corporation;
- Continued to operate CFS Corporation’s bank account after the company was deregistered; and
- Submitted illegitimate life insurance applications to insurers to receive commissions, without either instruction from or the awareness of the insured.
ASIC further alleged that Miller may be continuing to provide financial services and/or raise funds from clients.
It said that Miller and the related CFS companies did not appear to have sufficient assets to repay investors in CFS Corporation, and that CFS Private Wealth failed to lodge its financial accounts for the 2016 and 2017 financial years.
The regulator sought court orders to:
- Restrain Miller from providing financial services;
- Prevent the respondents from dealing with assets or investor funds;
- Wind up the companies and appoint a liquidator; and
- Disqualify Mr Miller from managing corporations.
The matter would be heard by the Federal Court in Brisbane this Thursday, 10 May.
AUTHOR
Hannah Wootton
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
