Former Securitor and Financial Wisdom planner banned for life
A formerSecuritor Financial GroupandFinancial Wisdomfinancial planner has been handed a life ban by theAustralian Securities and Investments Commission(ASIC) from acting as a representative of a securities dealer, investment adviser or holder of an Australian Financial Services Licence.
ASIC has alleged that between 1995 and 2000, Michael Andrew Smith of Glenalta, South Australia, had misused his position as a financial adviser and lost the money of four of his clients, a sum well over $400,000.
The regulator further alleged that in December 2001 and January 2002, Smith recommended another nine clients buy shares in Arrowlea without fully disclosing to them the commission that he was receiving. Arrowlea went into liquidation on February 27, 2002.
With co-operation from Securitor, ASIC has taken action to ensure that Smith’s clients are fully compensated where appropriate.
ASIC’s director of enforcement Jamie Orchard says due to the serious nature of Smith’s conduct, ASIC has permanently banned Smith from giving investment advice or carrying on a securities business.
“ASIC will not tolerate advisers who use their positions for their own gains, and will not hesitate to take action to protect the public from advisers who cannot be trusted in their industry”, Orchard says.
According to ASIC, Smith was an authorised representative of Financial Wisdom from November 1994 to October 1997. Between August 1997 and February 2002, he was an authorised representative of the Securitor Financial Group.
Smith conducted business as a financial planner and adviser through Mossbrook, a company of which he was a director and shareholder, and through the registered business name Mossbrook Financial Planning. Mossbrook was placed into receivership on February 8, 2002.
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