Two Sydney advisers banned for life
By Liam Egan
TWO financial planners who dishonestly sold tax-effective investment plans to migrants in south-west Sydney have been banned permanently by the Australian Securities andInvestments Commission (ASIC).
The corporate watchdog found Tony Zareei and Tunde Doja failed to act “honestly and fairly” in advising clients to invest in growth timber and wine projects.
It found Zareei and Doja also acted “unconscionably” in exploiting the special disadvantages of the migrants.
These included limited English language skills in many cases, inexperience in investment, and a reliance and trust in the men as their advisers.
Doja and Zareei also failed to disclose commissions and made misleading statements about the costs and fees associated with the investment.
Doja was the former sole director of Progressive Investment Securities, which was the vehicle he and Zareei used to promote the schemes.
Both residents of Sydney, Doja and Zareei were authorised representatives of a number of licensees, including Australian Growth Managers Limited.
ASIC deputy enforcement chief Allen Turton said advisers who exploit people’s “lack of financial know-how” would not be tolerated.
Turton said the investigation into the operations of Zareei and Doja was launched as a result of public complaints to ASIC.
The men have the right to lodge an application for review to the Administrative Appeals Tribunal.
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
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 the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
