ASIC suspends Aussie Rob's AFSL
The financial services regulator has placed a one-year licence suspension on Lifestyle Investor Services (LIS), a Gold Coast-based financial advice and options trading practice owned by Robert Wilson, who is otherwise known in the industry as 'Aussie Rob'.
LIS' Australian financial services licence was suspended by the Australian Securities and Investments Commission (ASIC) due to concerns that the practice had not complied with financial services laws and the conditions of its enforceable undertaking (EU).
In August 2011, ASIC accepted the EU from the practice, which followed an investigation into "misleading and deceptive conduct in the marketing of share trading software".
ASIC found that statements made by Wilson and the two companies in marketing the software were misleading and deceptive.
"These statements included: 'Writing covered calls is the same as 'Share Rental' or renting out real estate'; 'Options trading is easy' and 'Returns of 5-10 per cent per month and 60-120 per cent per year can consistently be achieved through use of Lifestyle Options - Share Rental'," ASIC revealed in its statement at the time of the EU.
According to the regulator, LIS failed to notify ASIC within five days of Scott Goold resigning as the responsible manager of the business and of details relating to Goold's replacement.
"LIS failed to maintain the competence to provide financial services following Goold's resignation as responsible manager, with no person appointed to replace him in the role and with Goold unable to adequately perform his role from overseas," ASIC said.
However, ASIC revealed it had reason to believe that LIS would not comply with its obligations under the law, based on concerns by Goold alleging serious issues about the management of the practice and its finances, as well as concerns subsequently identified about Goold's fitness to be a responsible manager.
LIS' authorised representatives will need to seek another Australian financial services licensee should they wish to continue trading, according to the regulator.
The practice was licensed to provide general financial product advice and deal in products including derivatives, foreign exchange contracts and securities.
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
