The Australian Securities and Investments Commission (ASIC) has permanently banned Mr Max Valentino, formerly known as Mr Max Soud, 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 Valentino, 32 years old of Granville in Sydney, had not performed the duties of a representative of a securities dealer efficiently, honestly and fairly, and had failed to comply with a financial services law.

Mr Valentino was an authorised representative of Saxby Bridge Financial Planning Limited (SBFP) from 5 March 1997 to 9 July 2001.

ASIC’s investigation found that after Mr Valentino had ceased being an authorised representative of SBFP, he made a personal securities recommendation to an AXA Australia client, without holding a licence to do so. Further, the recommended product, Axamillion Pty Limited, was not an investment product of AXA Australia.

Mr Valentino then transferred the funds into his personal company account, Maximillion Pty Limited, without the client’s permission or knowledge.

ASIC became aware of Mr Valentino’s misconduct following a referral from AXA Australia, and information provided by the NSW police. AXA Australia has subsequently compensated Mr Valentino’s client for any losses (plus interest) incurred through his misconduct.

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

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

ASIC’s enquiries are continuing.