ASIC has permanently banned a Sydney adviser from providing any financial services and cancelled the Australian financial services license (AFSL) of his company.
Donald James Cuthbertson was banned from providing any 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.
He is a director of three companies; PWMS, Professional Wealth Management Pty Ltd (PWM) and Professional Wealth Investments Pty Ltd.
His company, Professional Wealth Management Services Pty Ltd (PWMS), saw its AFSL cancelled with a condition that the external dispute resolution and arrangements for compensating clients remain in place for 12 months.
He became director of PWMS on 29 July 2014 and has been listed as a key person since 11 March 2015.
ASIC’s concerns arose from conduct regarding:
- Offers of redeemable preference shares in PWMS;
- Offers of unlisted shares in PWM;
- Promotion of a trading course involving contracts-for-difference; and
- Unlicensed dealing in derivatives.
ASIC found Cuthbertson is not a fit and proper person to provide financial services and that he:
- Misappropriated investor funds;
- Made false or misleading representations in connection with the redeemable preference shares he offered in PWMS and unlisted shares in PWM;
- Made false or misleading representations regarding the level of risk involved in trading contracts-for-difference; and
- Was involved in dealing with derivatives without appropriate authorisation.
PWMS’s AFS licence was cancelled based on the findings made regarding Cuthbertson, that PWMS:
- Failed to do all things necessary to ensure that its financial services were provided efficiently, honestly and fairly;
- Failed to ensure it had adequate arrangements in place for the management of conflicts of interest; and
- Failed to comply with the licence condition requiring PWMS to maintain total assets exceeding total liabilities as shown in the licensee’s most recent balance sheet lodged with ASIC.
Cuthbertson and PWMS have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision. The banning is recorded on ASIC’s banned and disqualified register.
And despite the plethora of legislation to eradicate poor or bad behaviour since the Financial services Reform Bill in 2000, I’m not sure why politicians think you can fix this problem by regulation.
Ever since Eve asked Adam to take a bite out of the red apple she was holding, some humans have always succumb to temptation.
Until the Almighty manufactures the perfect human being this is fait d’ compli.