Former PIS adviser banned for two years
A former adviser withProfessional Investment Serviceshas made an enforceable undertaking to the Australian Securities and Investments Commission (ASIC) not to act as an adviser for two years.
Andrew John Lloyd, of Payneham, South Australia, has agreed not to act as a representative of a securities dealer, investment adviser or futures broker, or to apply for or become a representative of an Australian Financial Services Licence for two years from today.
According to the corporate watchdog, Lloyd convinced a client to withdraw funds from a low risk investment and put them in a high risk business venture promoted by Lloyd, which was also not an approved product of PIS.
Lloyd failed to initially identify the conflict of interest to his client, and did not have reasonable basis in recommending that the client invest in the business venture, ASIC says.
Lloyd was also criticised for not adequately disclosing his commission and fee structure to his client, as well as failing to document expenses incurred.
“Investment advisers must always ensure that there is a reasonable basis for any advice that they give to their clients. They must also properly disclose all their fees, commissions and potential conflicts of interest,” ASIC’s director of enforcement Jamie Orchard says.
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