The Australian Securities and Investments Commission (ASIC) has permanently banned Mr Alexander Carrick Ross, 68 years of Berwick, Victoria, from providing financial services.

ASIC found that Mr Ross, a former authorised representative and proper authority holder of several Melbourne stockbroking firms, contravened a number of financial services laws by:

• failing to disclose his association with investments he recommended and any information about fees or commissions that he or his associates might receive as a result of the investments;
• failing to act in the best interests of his clients;
• failing to discharge his duties as an authorised representative efficiently, honestly and fairly; and
• engaging in misleading and deceptive conduct.

ASIC also formed the view Mr Ross was unlikely to comply with financial services laws in the future.

ASIC found that between February 1999 and May 2000, Mr Ross advised clients of Wilson HTM Stockbroking and Lands Kirwan Tong Stockbroking, who were predominantly elderly, to invest funds in Offshore IMF Investments Pty Ltd (Offshore IMF), a company of which he was a director and in Dynamic Business Services Pty Ltd (Dynamic), a company of which he was the company secretary.

Mr Ross had told the clients that an investment in these companies would generate a return of 12 per cent per annum. However, Mr Ross failed to disclose to clients that he would receive remuneration from Offshore IMF. Mr Ross further failed to disclose his interest in the companies to either the investors, Wilson HTM Stockbroking or Lands Kirwan Tong Stockbroking.

Mr Ross' clients invested a total of $960,000 however only $531,763 was returned in the form of interest payments.

In July 2004, ASIC obtained orders from the Federal Court to wind up Offshore IMF and Dynamic on the grounds of insolvency.

Mr Ross had also been declared bankrupt on 10 June 2004.

'ASIC is committed to protecting investors from advisers who mislead their clients about the investments they recommend', ASIC's Deputy Director of Enforcement, Mr Mark Steward said.

Mr Ross has the right to lodge an application for a review of ASIC's decision with the Administrative Appeals Tribunal.