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Thursday 24 February 2011

11-32AD ASIC bans former Storm financial adviser

A former authorised representative of Storm Financial Ltd has been banned from providing financial services for four years after an ASIC investigation found he made false and misleading statements and provided inappropriate advice to a number of his clients.

Mr Stuart Craig Drummond, of Clayfield in Brisbane, Queensland, was employed as an authorised representative of Storm Financial Ltd and its predecessor, Ozdaq Securities Pty Ltd, between 31 May 2004 and 18 June 2009.

ASIC’s investigation found that Mr Drummond failed to comply with financial services laws in relation to advice he provided to a number of his clients between October 2004 and July 2008. In particular, ASIC found Mr Drummond:

  • made false and misleading statements in breach of s1041E of the Corporations Act 2001,

  • engaged in misleading and deceptive conduct under s1041H of the Corporations Act 2001,

  • promoted the Storm strategy without considering the suitability of the strategy for individual clients,

  • provided Statements of Advice and Statements of Additional Advice containing misleading and deceptive information in order to induce them to invest using the Storm strategy, and

  • didn’t have an understanding of the nature and risks of financial products recommended on the basis of the Storm strategy.

Mr Drummond has the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.

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Last updated: 24/03/2011 12:00