The Australian Securities and Investments Commission (ASIC) has obtained orders from the Supreme Court of New South Wales permanently restraining Mr John Michael Higgins from providing financial products and financial advice, or dealing with clients’ funds.

Mr Higgins, a director of Macquarie Town Financial Services Pty Ltd in Richmond, New South Wales, has also undertaken to compensate all consumers who have suffered a financial loss as result of Mr Higgins’ misappropriating their investment funds.

Mr Higgins was previously a financial adviser with Garrisons Pty Limited (Garrisons) between 16 May 2001 and 12 March 2002. Garrisons terminated Mr Higgins’ authority to provide advice on 12 March 2002, after discovering Mr Higgins’ had placed clients’ money in his own business account.

ASIC commenced an investigation into the conduct of Mr Higgins after learning Mr Higgins had continued to provide financial advice while unlicensed.

In addition to the restraining orders, the Court also ordered that Mr Higgins must:

• sell or refinance particular assets, in order to repay consumers
• not deal with any of his assets without ASIC’s prior written consent
• engage an independent accountant to review his personal and business financial records and
• surrender his passport to ASIC.

Mr Higgins consented to the Court orders.

‘ASIC's action will ensure that consumers are protected from further misconduct by Mr Higgins, and are appropriately compensated for any losses incurred’, ASIC Director Enforcement, Mr Allen Turton said.

Any customer of Mr Higgins who believe that they have suffered loss should, in the first instance, contact the responsible licensee.

ASIC's investigation is continuing.