Former planning company director prosecuted
Prosecutions flowing from the collapse of Westpoint have claimed another financial planning scalp — this time a former director of Adelaide-based financial planning company, Power Financial Planning Pty Ltd.
The Australian Securities and Investments Commission (ASIC) announced on Friday that the former director, Stephen McArdle, had been found guilty in the South Australian Magistrates Court of aiding and abetting the company in providing financial services without an Australian Financial Services License (ASFL).
ASIC described Power Financial as being one of a number of companies operating under the Power Loan banner with representatives already having pleaded guilty to carrying on a financial services business without an AFSL.
The regulator had alleged that during 2005, Power arranged for 120 clients of an associated company, National Finance and Trading Group (NFTG), the proprietor of Power Loan, to invest over $10 million in financial products including Westpoint promissory notes and interests in Prime Retirement and Aged care Property Trust, Kebbel Development Fund No. 2 — Mount Gilead trust and Kebbel Development Capital fund No. 3 — the Riverside Pier Trust.
The court was told McCardle was a director of NFTG, Power and a number of other associated companies. ASIC alleged that McCardle had entered into agreements to market the various financial products, assisted with the issue of Product Disclosure Statements, and facilitated the transfer of application forms and investor funds.
AUTHOR
Mike Taylor
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