The Australian Securities and Investments Commission (ASIC) has permanently banned Robert William Thorn of Kings Langley, New South Wales, from acting as a representative of a securities dealer or an investment adviser.

Mr Thorn was an authorised representative of Colonial Financial Services Pty Ltd until 8 June 2001 when his proper authority was cancelled and returned following his resignation.

ASIC found that Mr Thorn misused client funds, provided false information to clients, gave false information on an application form and abused his position of trust.

In February 2000 Mr Thorn advised a client that one of his investments was not performing as well as expected and that he should transfer these funds into another investment bond.

With the client's agreement Mr Thorn deposited an amount of $38,250 into a new investment bond. However Mr Thorn then cancelled this bond and transferred the funds into his personal bank account.

When the client questioned Mr Thorn about the whereabouts of his money some months later,C Mr Thorn contacted another friend who was also a client, and proposed a restructure of his investments.

This client gave Mr Thorn a bank cheque for the amount of $39,850, which Mr Thorn used to repay the original client.

The second client has since been repaid his funds.

Mr Thorn was also an insurance agent with Norwich Union until his agency agreement was terminated by them in April 2001.