ASIC media releases are point-in-time statements. Please note the date of issue and use the internal search function on the site to check for other media releases on the same or related matters.
12-183MR ASIC cancels licences of Morrison Carr and permanently bans sole director
ASIC has today confirmed the reasons for its recent decision to cancel both the Australian financial services (AFS) licence and Australian credit licence of Morrison Carr Financial Services and permanently ban the sole director of Morrison Carr, Mr Dennis Cardakaris from providing financial services and engaging in credit activities.
This follows the formal withdrawal of an application for a review and stay of ASIC’s decision by the Administrative Appeals Tribunal (see ASIC Media Release 12-178MR ASIC cancels licences of national financial planning business).
Morrison Carr was a national financial planning business, based in Sydney. It provided financial planning and credit advice via its network of 42 Authorised Representatives and seven Credit Representatives located in offices around Australia.
The decision to cancel Morrison Carr’s licenses and permanently ban Mr Cardakaris followed a surveillance of the business commencing in October 2011.
ASIC was concerned Mr Cardakaris was not of good fame and character given evidence he provided false information to its insurer and took steps to avoid client claims.
Specifically, ASIC took this action on the grounds that:
- Morrison Carr did not have in place adequate compensation arrangements;
- Mr Cardakaris was not of good fame and character or a fit and proper person to engage in credit activities in that he provided false information in relation to an application for professional indemnity insurance and arranged for the transfer of business from a previous AFS licence, Morrison Carr Australia and in doing so, affected the ability of claimants of the previous licensee to pursue their claims;
- ASIC has reason to believe that Mr Cardakaris will not comply with financial services laws; and
- Mr Cardakaris has been involved in the contravention of credit legislation and ASIC has reason to believe that he is likely to contravene credit legislation.
ASIC Commissioner, Peter Kell, said ASIC was concerned Morrison Carr and Mr Cardakaris did not conduct their business in a fair, honest or professional manner, which is fundamental to maintaining integrity within the sector.
‘Licensees must take responsibility for the accuracy and completeness of the information they provide to their insurers, clients and ASIC. Mr Cardakaris was someone with a lot of experience in the financial services industry who should have known his responsibilities. Ultimately, licensees may choose to seek assistance from external consultants but they cannot outsource responsibility for the information provided.’
‘ASIC is committed to identifying instances of poor practice and removing those who do not meet the required performance and compliance standards. The compliance and broader legal requirements procedures are in place to provide important safeguards for clients.’
ASIC will ask all representatives of Morrison Carr to communicate the consequences of the licence cancellation to their clients.
The cancellation of Morrison Carr’s AFS licence and Australian credit licence, and the permanent banning of Mr Cardakaris from providing financial services and engaging in credit activities took effect on 25 July 2012 when the orders were served.
Mr Cardakaris retains the right to seek a review in the AAT of ASIC’s decision to permanently ban him from providing financial services and engaging in credit activities.