A Sydney-based financial adviser has been permanently banned from providing financial services after it was found he was unlicensed, acted dishonestly and made false or misleading statements.

Ropati Broederlow, of Punchbowl, NSW was the sole director of RN Property Pty Ltd.

An ASIC investigation found that between August 2010 and July 2011 Mr Broederlow advised RN Property’s clients to deposit funds into a trust account looked after by his company. He told clients that their savings would be used by them to purchase a house, with the assistance of RN Property. However, when the clients called for their savings, both RN Property and Mr Broederlow failed to use the funds on their clients' behalf or refund the invested money.

More than 20 clients deposited more than $150,000 into the trust account. ASIC found that Mr Broederlow:

• acted dishonestly in the course of carrying on a financial service;

• made false or misleading statements in relation to a financial product; and

• carried on a financial services business without holding an Australian financial services licence.

‘The licensing system provides important rights that protect people and their money,’ ASIC Commissioner Peter Kell said.

‘Anyone giving investment advice or selling financial products without holding a licence may be breaking the law, and ASIC will continue to pursue these offenders.’

Mr Broederlow has also been permanently banned from engaging in credit activities, with ASIC also cancelling the credit licence of Yourefund Pty Ltd (Yourefund), of which he was the sole director. ASIC believes Mr Broederlow is not a fit and proper person to engage in credit activities.

Mr Broederlow and Yourefund Pty Ltd have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.