Qld adviser banned for five years
A Brisbane financial adviser has been banned by the Australian Securities and Investments Commission (ASIC) after recommending his clients roll their superannuation into self-managed superannuation funds (SMSFs) and borrow to invest in residential property.
Stephen Garry Vick was banned from providing financial services, performing any function involved in the carrying on of a financial services business, and controlling an entity that carries on a financial services business, for five years.
ASIC's surveillance of Vick looked at client files from his time as an authorised representative of Madison Financial Group Pty Ltd.
His business comprised a group of companies that provided services in property sales, mortgage broking, accounting and financial advice.
It found Vick failed to act in the best interests of clients when he recommended his clients roll over their existing superannuation to a newly-established SMSFs and borrow to invest in residential property.
ASIC found Vick:
- Did not act in the best interests of clients and provide appropriate advice;
- Gave defective statements of advice to clients that contained numerous misleading statements and omissions;
- Had a business structure that created conflicts of interest, and that Vick prioritised his interests over the clients’ interests, and;
- Accepted conflicted remuneration.
The banning took effect on 5 September 2022. Vick applied to the Administrative Appeals Tribunal (AAT) seeking a review of ASIC’s decision, as well as stay and confidentiality orders but this was refused on 17 May 2023. No hearing date had been set for the substantive review of ASIC’s decision.
The banning was recorded on ASIC's publicly available Financial Advisers Register and the Banned and Disqualified register.
AUTHOR
Laura Dew
Recommended for you
The corporate regulator has cancelled the AFSL of a Perth advice firm, with the firm having previously seen its licence temporarily suspended in 2020.
Having proposed changes earlier this year, ASIC has clarified how it will support licensees with additional relief under the reportable situations regime.
AMP has partnered with BlackRock and research house Lonsec to provide a model portfolio capability on its North platform that offers “portfolio customisation at scale” to advice practices of all sizes.
Money Management rounds up actions ASIC took against advice individuals in the first half for FY25 from exam falsifications to dishonest conduct.
