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Monday 25 May 2015

15-121MR ASIC bans former representative of Macquarie Equities Limited

ASIC has banned Mr Brett O'Malley, of Sunshine Beach, Queensland, from providing financial services for five years after he engaged in unauthorised discretionary trading on his clients' accounts and created false records. 

Mr O'Malley was a representative of Macquarie Equities Limited (MEL) from December 2009 to January 2013.

ASIC's investigation found that in the period from February 2010 to November 2012, Mr O'Malley engaged in discretionary trading on nine client accounts. MEL has prohibited its representatives from engaging in discretionary trading on behalf of clients since 2004.

Mr O'Malley breached the financial services laws by holding out and representing to those clients that he was authorised by MEL to operate a discretionary trading account in circumstances where he was not.

ASIC also found that Mr O'Malley created records on behalf of clients that falsely indicated that he had provided advice to the clients prior to trading when he had not, in circumstances where he had engaged in unauthorised discretionary trading.

MEL is currently conducting a review process to compensate clients of Mr O'Malley for any losses suffered as a result of his conduct as part of a broader client remediation process which has been undertaken by MEL as agreed under an enforceable undertaking accepted by ASIC in January 2013 (refer 15-022MR).

ASIC Commissioner Peter Kell said 'Investors should feel confident that financial advisers are acting within the authority given to them by their licensee at all times and appropriately representing their interests. ASIC will act to remove advisers who fail to do so'.

Mr O'Malley has a right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.

Background

Discretionary trading is an arrangement by which a client gives a financial adviser the discretion to make investments on their behalf without the need to receive instructions from the client before each transaction. Under these arrangements, it is agreed that the financial adviser will use their investment expertise to generate a financial return for the client using the client's funds.

Mr Malley's conduct was reported to ASIC by MEL.

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Last updated: 23/03/2016 03:08