Planner misleads clients – five-year ban
Misleading Statements of Advice (SOAs) and inappropriate recommendations have resulted in a five-year ban from providing financial services for former Mawson Securities financial planner Neil Hartley.
The Australian Securities and Investments Commission (ASIC) handed down the sanction after it found the Queensland-based planner had failed to comply with financial services laws and that there was reason to believe this would continue.
In 2004-05, Hartley advised 13 clients to invest in tax effective managed investment schemes without considering their personal circumstances to determine whether the advice was suitable.
Hartley gave each of the clients misleading SOAs in which he told them the investment would provide diversification, flexibility, independence in selecting investment managers and access to wholesale investment pools.
These statements were false and ASIC concluded that Hartley used them to induce clients to make investments in accordance with his recommendations.
Hartley also failed to properly disclose the commission payments he would receive as a result of his advice.
ASIC also found that following Hartley’s resignation from Mawsons in October 2005, he continued to claim he was authorised to provide financial services.
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