Number of adviser bannings escalates
The Australian Securities and Investments Commission (ASIC) banned a record 50 investment advisers in 1999/2000, compared to just 17 the year before.
The Australian Securities and Investments Commission (ASIC) banned a record 50 investment advisers in 1999/2000, compared to just 17 the year before.
According to the ASIC annual report, the investment watchdog banned 16 advisers for life and the other 34 for a varying number of years.
Nine of the banned advisers are those who led clients into the failed Wattle Group. Fourteen people still face ASIC criminal charges relating to the failed $165 million scheme.
Those banned for life include former Hillross adviser Ian Pavletich, who was convicted of de-frauding St George Bank chairman Frank Conroy of $350,000. He was also sentenced to three and half years jail for the crime.
Another high profile banning was WA-based finance broker Graeme Clifford Grubb who was banned over a number of charges relating to the loss of $11 million by 200 investors. Grubb is also now serving a jail sentence for the crime.
The investment watchdog received 5534 complaints from the public, which was up 5 per cent from the previous year. Just under half of those complaints were referred for follow-up inspec-tion. About 80 of these led to an investigation by ASIC.
ASIC also scored more than 20 enforceable undertakings, including Westpac and Suncorp Met-way regarding disclosure of commissions and compliance issues.
More than 1000 prospectuses were lodged with ASIC in the year to June 30, a 46 per cent jump on the previous year.
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