The Australia Securities and Investments Commission (ASIC) has permanently banned Mr Gregory Bernard Clements, of Kallaroo in Western Australia, from acting as a representative of a securities dealer or of an investment adviser, and from providing any financial services.

An ASIC investigation found that he had carried on a financial services business without holding an Australian financial services licence and that he did not comply with the financial services law.

ASIC also banned Mr Clements after it was found he had not performed his duties as an authorised representative efficiently, honestly and fairly.

Mr Clements, was an authorised representative of National Australia Bank Ltd (NAB) from 15 October 1998 to 24 January 2003 and operated as a financial planner and adviser. During the period 2002-03, ASIC found that Mr Clements provided financial advice for EC Trust Co, which was not associated with his employment as a financial planner and adviser at NAB, nor was it an investment fund authorised by NAB. Mr Clements is no longer employed by NAB.

Over 17 investors from Western Australia had made ‘debenture’ investments in or through EC Trust Co to the approximate value of $1.5 million with claimed returns exceeding 50 per cent and a minimum guaranteed return of 9 per cent.

ASIC found that Mr Clements provided this advice without holding an Australian financial services licence. EC Trust Co is a company incorporated in Labuan, Malaysia.

ASIC also found that over the 2002-2003 period, Mr Clements repeatedly failed to have a reasonable basis for making recommendations to a significant number of clients.

Mr Clements has a right to apply to the Administrative Appeals Tribunal for review of ASIC’s banning order.