ASIC takes civil action against unlicensed couple
The Australian Securities and Investments Commission (ASIC) claims Queenslanders, Dr Roger Gareth Munro and Kathleen Susan Munro, have been providing financial services without an Australian Financial Services licence (AFSL) since August 2011.
In a statement released today, ASIC alleged that Dr Munro had been operating an unlicensed financial services business for the last four years with the assistance of his wife.
ASIC alleged that:
- Dr Munro continues to tell investors he is generating profits from trading, when documents obtained by ASIC identify that Dr Munro appears to have lost money from trading in Australia;
- Dr Munro has raised over $1.5 million from investors, friends and family for trading purposes, but has failed to keep any, or produce any, books or records to ASIC in relation to this fundraising; and
- A significant portion of funds which have been provided to Dr Munro for trading have ultimately been transferred to a brokerage account in Mrs Munro's name, for trading — traded funds are then redeemed and transferred into another bank account held by Mrs Munro.
ASIC has sought a declaration that Dr Munro has been carrying on a financial services business without holding an AFS licence. ASIC has also sought a declaration that Mrs Munro has either been carrying on a financial services business without holding an AFS licence, or aided or abetted Dr Munro to do so.
ASIC has sought orders which:
- Restrain Dr Munro and Mrs Munro from carrying on a financial services business in Australia, without holding an AFS licence;
- Restrain Dr Munro and Mrs Munro from disposing of or dealing with investor funds;
- Restrain Dr Munro from operating certain bank accounts and trading accounts;
- Restrain Mrs Munro from providing any aid or assistance to Dr Munro in carrying on a financial service business;
- Restrain Mrs Munro from allowing Dr Munro to use or operate certain bank accounts in her name; and
- Direct Dr Munro to provide ASIC with information about his fundraising activities and the location of investor funds.
ASIC's application is listed in the Brisbane Supreme Court on 7 August 2015.
Recommended for you
It can be extremely hard to realise the gains from financial advice M&A, according to Peloton Partners’ Rob Jones, and more could be gained from firms looking inward at their own practice.
With platforms reporting their quarterly results, there is a clear divide in the adviser markets they are targeting, according to platform specialist Recep Peker, and which would be right for your clients.
The Federal Court has imposed a $10 million penalty on Macquarie Bank for failing to prevent and control unauthorised fee transactions by third parties including financial advisers.
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.
