Ban removed on adviser linked to Wattle scheme

An adviser banned by the Australian Securities and Investment Commission (ASIC) for involvement in the Wattle Group has had the ban set aside after an appeal to the Administrative Appeals Tribunal (AAT).

Former Financial Wisdom adviser Ross Michael Cardillo was banned by ASIC from acting as a representative of a securities dealer or investment adviser for 15 months from early May this year.

At the time, ASIC alleged Cardillo received commissions for arranging presentations by Wattle to potential investors and received signed agreements and cheques which were forwarded to an unlicensed dealer, Mackay & Allen.

ASIC claims that in doing so Cardillo acted as a representative of Mackay & Allen, in breach of the Corporations Law.

In placing the original ban, ASIC alleged Cardillo failed to act in the best interest of his clients by referring them to an unlicensed dealer for the purpose of investing in the Wattle scheme and failed to conduct research into the investment.

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ASIC also alleged he breached a duty he owed as a representative of his licensed dealer, Financial Wisdom, by introducing clients to the unlicensed dealer, despite instructions to the contrary from Financial Wisdom.

However, in handing down its decision, the AAT says that while it considered that Cardillo acted as a representative of Mackay & Allen, he did not personally endorse, induce or attempt to induce people to invest in the Wattle Group.

As such, the AAT concluded he did not pose a further risk to the investing public. The Tribunal also ordered that the banning order be lifted effective from 29 November 2000.

As a result, Cardillo is free to act as a representative of a securities or investment adviser.

The lifting of the ban comes after the promoters of the scheme were recently committed to stand trial on alleged breaches of the Corporations Law and for running a securities business without holding appropriate licences.