The Australian Securities and Investments Commission (ASIC) has permanently banned Mr Michael Andrew Smith of Glenalta, South Australia, from acting as a representative of a securities dealer, investment adviser or holder of an Australian Financial Services Licence.

Mr Smith was an authorised representative of Financial Wisdom Limited from November 1994 to October 1997. Between August 1997 to February 2002 he was an authorised representative of Securitor Financial Group Ltd (Securitor).

Mr Smith conducted business as a financial planner and adviser through Mossbrook Pty Ltd, a company of which he was a director and shareholder, and through the registered business name ‘Mossbrook Financial Planning’. Mossbrook Pty Ltd was placed into receivership on 8 February 2002.

As a result of its investigation, ASIC alleged that between 1995 and 2000, four of Mr Smith’s clients had invested over $400,000 with Mr Smith and that as a consequence of his conduct, the money had been lost.

ASIC further alleged that in December 2001 and January 2002, Mr Smith recommended another nine clients buy shares in Arrowlea Pty Ltd without fully disclosing to them the commission that he was receiving. Arrowlea Pty Ltd went into liquidation on 27 February 2002.

With co-operation from Securitor, ASIC has taken action to ensure that Mr Smith’s clients are fully compensated where appropriate.

‘Due to the serious nature of Mr Smith’s conduct, ASIC has permanently prohibited Mr Smith from giving investment advice or carrying on a securities business’, ASIC’s Director Enforcement, Jamie Orchard said.

‘ASIC will not tolerate advisers who use their positions for their own gains, and will not hesitate to take action to protect the public from advisers who cannot be trusted in their industry’, he said.

Investors can check whether a financial adviser has been banned from providing investment advice at ASIC's website, www.fido.asic.gov.au.