The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) license for Gold Coast-based Trade Wind Financial Services (Trade Wind FS) and banned its former financial adviser, Adam Bevan, for five years from providing financial services for failing to act in the best interest of his clients.
Bevan, who an authorised representative and sole director of Trade Wind, was also banned from controlling a financial services business or performing any function in relation to carrying on a financial service business.
According to the corporate regulator, Bevan failed to act in the best interests of three Trade Wind FS clients when he failed to make reasonable enquiries about their existing superannuation funds and when he did not put in place measures to ensure their funds were transferred in accordance with his advice.
Additionally, ASIC also found that Bevan was not a fit and proper person, having regard to his connection to a refusal or failure to give effect to a determination by the Australian Financial Complaints Authority (AFCA).
Separately, ASIC also cancelled the AFSL of Trade Wind FS, effective 26 May, 2021, due to a failure by Trade Wind FS to co-operate with AFCA and pay two AFCA determinations on time.
ASIC also said that Trade Wind FS also failed to lodge its 2019 and 2020 audited financial accounts and comply with several licence conditions including failing to notify ASIC of the change in the key person for the AFSL.
“Although ASIC has cancelled the AFSL, it has used its power under s915H of the Corporations Act to allow the licence to continue in effect until 31 August, 2021,” ASIC said.
“This ensures that the AFSL is treated as not having been cancelled for the purpose of putting in place a dispute resolution scheme and further arrangements for compensating retail clients, including professional indemnity insurance.”
Bevan applied to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.