ASIC has banned Mr Jade Zaicew, a former employee of Commonwealth Financial Planning Ltd (CFPL), from engaging in credit activities and providing financial services for a period of seven years.

Mr Zaicew, of Port Macquarie, New South Wales was a financial planner with CFPL between 29 May 2008 and 29 May 2012.

Mr Zaicew was banned from providing financial services as ASIC found that between August 2011 and May 2012, he engaged in misleading and deceptive conduct by:

• conducting unauthorised transactions on several client accounts

• including false information in three documents for the purpose of recording client instructions that were not in fact given, and

• backdating four records of advice contained on client files.

ASIC also determined that Mr Zaicew should be banned from engaging in credit activities because:

• he is not a fit and proper person to engage in credit activities in light of the misleading and deceptive conduct he engaged in while at CFPL, and

• he caused his company Lifeguard Private Wealth Pty Ltd (Lifeguard) to breach the credit legislation by representing on the company website that Lifeguard was able to engage in credit activity in circumstances where it was not licensed to do so.

Mr Zaicew has the right to seek a review of ASIC’s decision to the Administrative Appeals Tribunal.

Background

Mr Zaicew's conduct was identified as part of an enforceable undertaking (EU) accepted by ASIC in October 2011 which required CFPL to conduct a comprehensive review of its risk management framework and legal and regulatory obligations regarding the provision of financial services, financial advice and the monitoring and supervision of its representatives.

Further, under the EU where clients were found to have been adversely impacted by the conduct of representatives, CFPL was to remediate the client (refer: 11-229MR for further information). As a result, over 1,100 customers have received around $51 million in compensation.

Mr Zaicew's banning follows actions against former CFPL financial advisers Don Nguyen (refer: 11-42AD), Simon Langton (refer: 12-02AD), [This MR was withdrawn in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.], [This MR was withdrawn in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.], Anthony Awkar (refer: 12-81MR), [Media release withdrawn in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities] and Ricky Gillespie (refer: 12-269MR).

Former clients of Mr Zaicew or clients of other CFPL advisers who feel they may be entitled to claim compensation should contact CFPL directly on 1800 507 281.