The Australian Securities and Investments Commission (ASIC) today permanently banned John Geoffrey Margaria, the former managing director of mortgage broker Global Finance Group Pty Ltd, from carrying on any business of giving investment advice or dealing in securities.

 Global Finance Group Pty Ltd closed down in February 1999 as a consequence of an ASIC investigation and went into liquidation in April 1999.

 As a result of ASIC’s prior investigations, ASIC is of the view that Mr Margaria did not carry on Global’s business to the standards expected in the finance industry.

 In particular, ASIC is of the view that, in a number of cases, Mr Margaria gave mortgage investors misleading information about the merits and risks of proposed mortgage investments, or failed to make adequate enquiries to assess the merits or risks of those investments.

Mr Margaria does not admit ASIC’s allegations but did not contest ASIC’s banning order.

 The banning will remain in place regardless of whether Mr Margaria is acquitted or convicted of charges brought against him by the WA Police Service, to which he has pleaded not guilty.

 Mr Margaria is the fifth WA finance broker removed from the securities industry by ASIC in the last twelve months.

 “ASIC is committed to ensuring that that part of the WA finance broking industry coming within ASIC’s jurisdiction carries on business honestly and competently”, Stephen Howell, ASIC’s Director of Enforcement in Western Australia, said today.

 “The closure by ASIC of some broking companies, the removal of individuals from the investment advice business and ASIC’s licensing of remaining players is part of the process of ensuring that the problems of the last two years are not repeated”, Mr Howell said.