Corporate regulator gets down to business in 1Q25

ASIC was active in the first quarter of 2025 with several financial adviser bannings and serious court action.

Alongside the corporate watchdog, the Financial Services and Credit Panel (FSCP) – which ASIC draws upon when forming individual sitting panels – was also busy handing down outcomes to advisers.

Below, Money Management compiles the most significant action announced by ASIC or the FSCP in the first three months of the year.

January

The corporate regulator announced its first adviser banning of the year on 24 January, with two orders permanently banning Calamvale-based financial adviser David Eduardo Cubilla. This followed his conviction of fraud, which related to him stealing funds from a client’s superannuation account.

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February

In the second month of the year, jailed former financial adviser Bradley Grimm lost his appeal to have his prison term overturned. He was convicted to three counts of engaging in dishonest conduct between February and November 2015 while running a financial services business.

He was then sentenced to 18 months’ imprisonment on 5 September 2024, with nine months to serve, and to be of good behaviour for a period of 18 months upon release pursuant to a recognisance in the amount of $5,000.

Also in February, former adviser David Valvo was sentenced in court after pleading guilty to dishonest conduct to a term of imprisonment for three years and nine months for one count of dishonest conduct. However, the sentence was suspended in accordance with his good behaviour for five years from 12 February 2025.

A former Perth financial adviser, Anthony Paul Torre, also pleaded guilty in court to stealing $1 million from his clients for his own benefit. Under the Criminal Code (WA), the maximum penalty for each offence of stealing is seven years’ imprisonment and for fraud, seven years’ imprisonment or 10 years if the person deceived is aged over 60 years.

A Queensland financial adviser, Lachlan John King, was permanently banned by ASIC in February after being found guilty of misappropriating $1.8 million from his clients.

Alongside ASIC, the FSCP was also active during the month. It first gave a relevant provider a written direction for additional retirement planning continuing professional education after a concessional contribution cap error.

The FSCP then cancelled the registration of an NSW adviser for two years as it felt he displayed a “level of incompetence” in providing advice to his clients. The panel said it reasonably believed he had contravened the best interests duty, the appropriate advice obligation, failed to prioritise his clients’ interests over his own, and made misleading statements.

March

The month of March saw ASIC ban the Northern Territory-based financial adviser Harris John Kohu Shortland for seven years following his conviction of supplying dangerous drugs, namely, cocaine, and receiving or possessing the proceeds of their sale.

Peter Surtenich was also banned by ASIC in March from providing any financial services. The corporate regulator said he “acted dishonestly and showed a fundamental lack of knowledge and judgement, integrity, trustworthiness and professionalism”.

ASIC’s most recent action was the banning of Grant Richard Thomson, a Queensland adviser, from providing financial services for five years after failing to provide appropriate advice that was in the best interests of his clients.