The Australian Securities and Investments Commission (ASIC) has banned former Melbourne financial adviser Robert Michael for dishonestly borrowing money from his clients’ self-managed super funds (SMSFs).
From August 2009-July 2017, Michael was an authorised representative of Marigold Falconer International Pty and Allied Financial Solutions Pty through his business RM Wealth Management Pty.
ASIC found Michael engaged in dishonest, misleading and deceptive conduct by procuring $204,000 in loans from four of his clients’ SMSFs between April 2012-September 2018. These were then used for his own personal expenditure including gambling and private school fees.
He was found to have breached financial services laws and was not of good fame and character on 26 July, 2019.
The regulator also found he:
- failed to disclose commissions on financial investments that he recommended and implemented on behalf of clients;
- recommended financial investments without disclosing that a conflict of interest existed;
- failed to prioritise his clients’ interests ahead of his own;
- failed to act in the best interest of his clients in relation to loans procured from clients and recommending high risk investments which were contrary to clients’ risk appetites;
- failed to provide clients with statements of advice, product disclosure statements and fee disclosure statements; and
- engaged in unlicensed financial advice beyond the cessation of his authorisation as a financial adviser.