Unlicensed adviser banned
The Federal Court has banned a Tasmanian-based company and its director from providing financial product advice following allegations they charged consumers up to $40,000 for unlicensed advice on securities and derivatives.
According to the Australian Securities and Investments Commission (ASIC), Oxford Investments Tasmania and its director Steven Moore conducted a series of so-called ‘training courses’ on trading future contracts on the Sydney Futures Exchange despite neither holding a financial services licence.
More than a dozen people, most of whom live in or near Hobart, attended the courses between January 2004 and March 2006 and several agreed to pay up to $40,000 for the training and a supplementary computer software program.
ASIC alleges that Moore made recommendations that were intended to influence course attendees’ decisions on trading in securities or derivatives.
Court orders precluding Moore and Oxford from providing financial advice on securities and derivatives will remain in force until either another order is made or proceedings are concluded.
ASIC is seeking final orders restraining Moore and Oxford from providing any kind of financial advice in future as well as declarations that their conduct breached the consumer protection provisions of the ASIC Act.
AUTHOR
George Liondis
Recommended for you
As the financial advice industry looks to embrace career changers, Money Management speaks to a former teacher and international development worker who took the leap into advice.
A Federal Court ruling on whether licensees need to ‘take all reasonable steps’ regarding conflicted remuneration could extend to other parts of the advice process, according to law firm Hall & Wilcox.
Young investors aged under 40 are more than twice as likely to measure the value of their financial adviser based on progress towards their goals, Dimensional research uncovers.
A new financial advice business, licensed by Centrepoint Alliance, has recently commenced operations servicing HNW clients including retiring Baby Boomers and single women.
