The Australian Securities and Investments Commission (ASIC) has permanently banned Mr Paul Drakos, a financial planner from Sydney, from acting as a representative of a dealer or investment adviser.

The banning order was made after ASIC found that Mr Drakos had not performed the duties of a representative of a securities dealer efficiently, honestly and fairly and that as a result of his conduct, may not do so in the future.

Mr Drakos was an authorised representative of the National Australia Bank Limited (NAB) from October 1994 to August 2001.

ASIC’s investigation found that from 1997 to 2001, Mr Drakos made recommendations to a number of his clients in a non-approved product, BSI Corp, in the Bahamas. In excess of $4.7 million of his clients investments were lost.

NAB suspended Mr Drakos and notified ASIC upon discovering Mr. Drakos’ actions. His employment with NAB was terminated on 1 October 2001.

Mr Drakos was declared an undischarged bankrupt on 13 June 2003.

NAB has made restitutions to most of the former clients of Mr Drakos who lost their investments.

‘ASIC will act to ensure that financial advisers who act dishonestly and in breach of the law, are removed from the industry’, ASIC Director of Enforcement, Mr Allen Turton, said.

ASIC’s enquiries are continuing.