Planner jailed for 12 months
The former director of Power Financial Planning, who dealt in Westpoint products, has been sentenced to 12 months imprisonment.
Stephen McArdle was sentenced in the Magistrates’ Court of South Australia, after being found guilty of aiding the company to provide financial services without an Australian Financial Services Licence.
The court also ordered that $10.3 million be paid by Power Financial Planning and McArdle as compensation to investors, while the company was convicted and fined the maximum penalty of $33,000.
As one of the companies operating under the Power Loan banner, Power Financial Planning arranged for 120 clients of an associated company to invest over $10 million in financial products, including Westpoint promissory notes and interests in Prime Retirement and Aged Care Property Trust, among others.
McArdle was also a director of National Finance and Trading Group. The Australian Securities and Investments Commission alleged that McArdle entered into agreements to market various financial products, assisted with the issue of Product Disclosure Statements, and facilitated the transfer of application forms and investor funds.
He will be eligible for parole after serving six months in jail, after which he will be subject to a good behaviour bond.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
