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11-315AD ASIC accepts enforceable undertakings from financial advisers
ASIC today accepted enforceable undertakings (EUs) from three financial advisers formerly employed by Storm Financial Ltd.
The three financial advisers are Ms Carey Fraser of North Ward, Queensland, Mr Trevor Alan Benson of Aspley, Queensland and Mr David Robert McCulloch of Mount Louisa, Queensland.
The EUs were offered following ASIC’s concern and subsequent investigation that in advising clients to adopt the Storm model of investment, Ms Fraser, Mr Benson and Mr McCulloch only advised clients to invest in accordance with the Storm model of investment and without considering whether any other strategy would meet their needs. ASIC was also concerned that their advice involved the implementation of a gearing strategy and they failed to advise clients that the advice provided to them was not necessarily appropriate or tailored to meet their financial goals and objectives.
Ms Fraser has undertaken not to participate in the financial services industry for a period of two years and to inform ASIC if she obtains employment in the financial services industry within the period of a further two years following the expiry of the suspension period.
Mr Benson and Mr McCulloch have undertaken to complete specified professional education within six months and to submit to a regime of supervision, review and audit of their financial services provided to retail clients by an independent senior financial planner (approved by ASIC) for a period of two years.