Former adviser to medicos permanently banned for dishonest conduct
The Australian Securities and Investments Commission (ASIC) has permanently banned an adviser who provided advice to medical professionals after finding he had disbursed client funds to parties related to the adviser.
ASIC banned Nigel Keith Flowers, 49, of Coolangatta, Queensland from providing financial services and engaging in credit activities after it found he had engaged in dishonest conduct, was not of good fame and character and not a fit and proper person to engage in credit activities.
Flowers had been the director of Flowers Financial Group Pty Ltd (In Liquidation) and Flowers Financial Management Pty Ltd (In Liquidation) which ceased providing financial planning advice in late 2011 and entered liquidation in early 2013. ASIC cancelled the group's Australian financial services licence in April 2013,
Prior to this Flowers had raised funds from from long-term clients of Flowers Financial Management to fund a proposed initial public offering (IPO) by Avior Australia Ltd (Avior).
The IPO attracted $1.475 million with Flowers establishing a trust account of which he was the sole signatory to collect his clients' funds.
However ASIC claimed that between February 2011 and March 2012, Flowers improperly disbursed more than $720,000 from the account with more than $696,000 paid to entities related to Mr Flowers.
After the cancellation of the IPO Avior returned $30,000 to the trust account so that it could be returned to investors with ASIC finding that flowers improperly disbursed over $29,000 with at least $27,000 of these disbursements paid to entities related to Flowers.
ASIC's investigation is continuing and Flowers has the right to appeal to the Administrative Appeals Tribunal for review of its' decision.
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