The Australian Securities and Investments Commission (ASIC) has permanently banned Mr John Michael Higgins, of Sans Souci, New South Wales, from acting as a representative of a securities dealer or of an investment adviser, and from providing any financial services.

Mr Higgins is a director of Macquarie Financial Services Pty Ltd in Richmond, New South Wales, and operated as a financial planner and adviser.

An ASIC investigation found that Mr Higgins misappropriated approximately $2 million from clients.

ASIC found that Mr Higgins:

• failed to invest client funds in accordance with their instructions;
• deposited clients’ funds into the bank accounts of his business, without the knowledge or consent of the client;
• used some of the funds for his own purposes;
• misrepresented to clients their money had been invested; and
• failed to return client funds when requested to do so.

On 26 November 2002 ASIC obtained orders in the Supreme Court of New South Wales permanently restraining Mr Higgins from providing financial advice or dealing with client funds.

This followed ASIC’s discovery that although Mr Higgins’ authority was terminated by Garrisons Pty Ltd when they became aware of his conduct, he had continued to act as an unlicensed financial adviser.

Following the action in the Supreme Court Mr Higgins undertook to compensate the clients who suffered financial loss as a result of his misappropriation of their money.

Investors can check ASIC’s website atwww.asic.gov.au to see if a financial adviser has been banned from the industry.

ASIC’s investigation is continuing.