ASIC has permanently banned Mr Colin James Oberg, formerly operating out of offices in Miranda, NSW, from providing financial services after he withdrew over $1.55 million of client funds without their authorisation or approval.

ASIC found that Mr Oberg, who was a financial adviser and authorised representative of Wealthsure Financial Services (Wealthsure), withdrew client funds between September 2007 and October 2008.

Mr Oberg claimed that he used the funds for an overseas investment which he placed through an associate. According to Mr Oberg, he was told via text message from the associate to deposit the funds into the bank account of a third person. From there, the funds would be transferred to the overseas institution. Mr Oberg stated that he did not know who the third person was or why the funds needed to be deposited into that account.

Mr Oberg told ASIC that he did not know the name of the overseas bank or institution where the funds were to be placed, did not have any documentation in relation to the arrangement, and did not know how returns would be generated.

ASIC found that Mr Oberg acted dishonestly when taking funds from his clients’ accounts, was satisfied that Mr Oberg was not a person of good fame and character, and that a permanent banning was appropriate.

ASIC Commissioner Peter Kell said, ‘there is no place in the financial industry for individuals who use client funds dishonestly and ASIC will act promptly to remove those who do.’

ASIC was alerted to Mr Oberg’s conduct by Wealthsure in October 2010, by which time Wealthsure had revoked Mr Oberg’s status as its authorised representative.

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