SaxbyBridge Financial Planning,ABS Securitiesand its director are back in business following a successful appeal against theirAustralian Investments and Securities Commission(ASIC) ban.
Both Saxby and ABS had their dealer licences stripped in November 2001, and Jeffrey Joseph Braysich, Saxby principal and a director of both firms, was banned from acting as an investment dealer or an adviser for five years.
However, the Administrative Appeals Tribunal (AAT) has decided to uphold an appeal by the firms, lifting the ban on Braysich, and required ASIC to reinstate their securities dealer licences.
The conditions stipulated for the reinstatement are that there must be more effective disclosure of fees and commissions and of any interest that might influence advice.
However, ASIC is considering appealing this latest decision in the Federal Court.
ASIC deputy executive director for enforcement Jan Redfern says: “We are disappointed with the AAT decision and are reviewing our position.”
Leading up to the bans, an ASIC investigation discovered Saxby and ABS and their shared director, Braysich, were involved in marketing tax schemes to their clients in a matter that created concern.
Braysich was found to have a serious conflict of interest with clients across both companies. He stood to reap profits from tax schemes through other groups he ran, including the Preston Vale Vineyard Project and the No Regrets I Project.
The remuneration structure of Saxby and ABS was also seen to encourage advisers to recommend tax schemes over alternative, less risky investments.
