ASIC takes adviser to court
The corporate watchdog has taken a Bathurst financial adviser to court who is charged with six counts of using his position dishonestly, and one count of dishonestly obtaining financial advantage by deception.
Keith James Flowers, previously known as Nigel Keith Flowers, between 1991 and 2012 primarily provided financial services to medical and dental professions in Australia. He was the founder and controller of Flowers Financial Group, and the director of Flowers Financial Management (FFM) and 1Source Wholesale Investments.
The Australian Securities and Investments Commission (ASIC) said in 2001 Flowers and Flowers Financial Group raised seed capital to float an amalgamation of several financial planning businesses.
1Source Wholesale was utilised as the trustee company to hold funds for the proposed float and initial public offering (IPO).
ASIC alleged between June 2011 and April 2012, Flowers used his position as a director of 1Source Wholesale dishonestly, with the intention of gaining advantage for either himself or FFM, by causing the transfer/withdrawal of $179,500 of seed capital.
The watchdog also alleged that the adviser falsely claimed that $30,000 raised for the failed IPO would be returned to investors after the float was cancelled but that he instead applied the funds for his own benefit and for 1Source Holdings.
The matter has been adjourned to 15 October, 2019.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
