Banned adviser used mother’s name
THE Australian Securities and Investments Commission (ASIC) has permanently banned Martin James Donohue from acting as a representative of a securities dealer or investment adviser, and from providing any financial service.
According to ASIC, in December 2000, Donohue, a Victorian-based adviser who was an authorised representative of Shaw Stockbroking, opened a client trading account in his mother’s name, and actively traded in shares and options, despite the fact his mother did not authorise the opening or trading of the account.
Shaw Stockbroking then notified Donohue between May and June 2002 that the margin collateral in the account was insufficient to cover the exposure from the account’s options trading, and requested Donohue have his client rectify the situation.
ASIC found that Donohue then forged the signature of his stepmother, who operated a legitimate trading account with Shaw Stockbroking, authorising shares valued at $120,000 to be used as collateral against the losses on the account that Donohue had opened in his mother’s name. Donohue’s stepmother was unaware of the use of her shares as collateral.
Shaw Stockbroking terminated Donohue’s employment in September 2002 when it became aware of his conduct.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
