ASIC life ban for unlicensed WA pair
TheAustralian Securities and Investments Commission(ASIC) has permanently banned two West Australians for providing financial advice after the pair were caught operating a financial services business without holding an Australian financial services licence.
Gregory Bernard Clements and Neil Charles Manning have both been banned from acting as a representative of a securities dealer or of an investment adviser, and from providing any financial services following their role in directing $1.5 million of client funds into a Malaysian incorporated investment firm — EC Trust Co.
ASIC also banned Clements, who was also an authorised representative of National Australia Bank at the time, after ruling he failed to perform his duties as an authorised representative efficiently, honestly and fairly.
According to the regulator, Clements repeatedly failed to offer a reasonable basis for making recommendations to a number of clients over 2002 and 2003.
Over 17 investors with the pair were advised into making debenture investments in or through EC Trust Co to the approximate value of $1.5 million with claimed returns exceeding 50 per cent and a minimum guaranteed return of 9 per cent.
“The promise of high returns especially when the investment is in an unknown overseas trust exposes investors to unreasonable risks. Investors should not seek advice or act on the advice of unlicensed financial advisers,” ASIC deputy executive director of enforcement, Mark Steward says.
“Remember, no licence means no protection, so our advice is simple — deal only with businesses that hold an Australian Financial Services licence,” Steward adds.
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