The financial services regulator said the sole director of Morrison Carr, Denis Cardakaris, was not of good fame and character given evidence he provided false information to its insurer and avoided client claims.
The Australian Securities and Investments Commission (ASIC) has released further details about cancelling Morrison Carr's financial services and credit licences, as well as banning its director Cardakaris from the industry.
ASIC stated it took this action on the grounds that the company did not have in place adequate compensation arrangements.
"Cardakaris was not of good fame and character or a fit and proper person to engage in credit activities in that he provided false information in relation to an application for professional indemnity insurance," ASIC stated.
"[He] arranged for the transfer of business from a previous AFS licensee, Morrison Carr Australia and in doing so, affected the ability of claimants of the previous licensee to pursue their claims."
The regulator said it had reason to believe that Cardakaris will not comply with financial services or credit laws in the future.
Morrison Carr was a national dealer group headquartered in Sydney, which provided financial planning and credit advice via its network of 42 authorised representatives and seven credit representatives.
ASIC Commissioner Peter Kell said ASIC was concerned Cardakaris and his company did not conduct their business in a fair and professional manner.
"Cardakaris was someone with a lot of experience in the financial services industry who should have known his responsiblities," Kell said.
"Licensees must take responsibility for the accuracy and completeness of the information they provide to their insurers, clients and ASIC," he added.