ASIC Moves to Stop Adviser Providing Services

ASIC has taken legal action to prevent an adviser, whom it alleges submitted illegitimate life insurance applications to receive commissions, from providing any further advice.

The regulator stated it had commenced proceedings in the Federal Court of Australia against New South Wales financial adviser, Graeme Walter Miller and three related companies: CFS Private Wealth, Combined Financial Solutions and BDM Asia Pacific (formerly known as CFS Corporation).

Following an investigation, ASIC alleged that Miller had submitted illegitimate life insurance applications to insurers in order to receive commissions, in circumstances where the insureds had not instructed him to submit applications on their behalf and were not aware that he had done so.

ASIC also alleged Miller had recommended that clients establish a self-managed superannuation fund and use their SMSF funds to invest in CFS Corporation, of which he was a director; and used investor funds for personal use and to repay other investors in CFS Corporation, and may be continuing to provide financial services and/or raise funds from clients.

The regulator stated it was seeking orders to restrain Miller from providing financial services; prevent any dealings with assets or investor funds; to wind up the companies and appoint a liquidator; and disqualify Miller from managing corporations.

ASIC’s investigation is continuing and the matter will be heard in the Federal Court in Brisbane on 10 May 2018.

In other ASIC-related news, the regulator has cancelled the Australian Financial Services licence of NSW-based risk advice firm Mackellar Financial Services.

The licence, which was held by Mackellar since July 2012, had been suspended in from 31 October 2017 until 30 April 2018 for failing to lodge financial statements and auditor’s reports for a period of four years (see: ASIC Suspends Licence of Risk Firm).

ASIC stated that licensees were required to lodge financial statements and auditor’s reports to demonstrate their capacity to provide financial services and a failure to comply with reporting obligations could be an indicator of a poor compliance culture.

  • IndyJonesJnr

    This is way too subjective. I’ve seen auditors pass adviser files where I can clearly see a lack of best interest. And yet fail an adviser with exceptional advice who has not uploaded their file notes within 24 hours. Which is the bigger crime? You would be virtually unemployable if dismissed under this circumstance. And yet It could be the equivalent of losing your car for 2 speeding fines.

  • Old Risky

    For all those degree-laden newish risk writers hidden away in an investment advisers back office, Mr Miller was engaging in that time honoured illegal practice of “tomb-stoning” ,probably assisted by the convenience of an E-App
    Everything old is new again !