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Wednesday 25 February 2015

15-038MR ASIC bans Queensland financial advisor for five years

ASIC has banned Mr David Neil Wilkins, of Springwood, Queensland from providing financial services for five years.

Mr Wilkins was banned after ASIC found he had engaged in misleading conduct and provided inappropriate advice.

At the time of the misconduct, Mr Wilkins was an authorised representative of RBS Morgans Ltd, Romad Financial Services Pty Ltd and later, MDS Financial Planning Pty Ltd. During this time, he offered his ‘Options Strategy’ to at least 152 clients. The ‘Options Strategy’ involved Mr Wilkins recommending to his clients that they engage in options trading based on recommendations sent by him or his company.

An ASIC investigation found that between September 2010 and May 2012, Mr Wilkins did not comply with financial services laws as he:

  • engaged in conduct regarding a financial product or a financial service that was misleading or likely to mislead by representing that options trading carried little to no risk, and
  • provided inappropriate advice to clients about trading in options and failed to make appropriate inquiries about the relevant personal circumstances of those clients.

Deputy Chairman Peter Kell said, ‘Trading in options is complex, can be very risky and is not appropriate for all clients. ASIC will act to remove those advisers from the industry who fail in their obligations to provide appropriate advice.’

‘Licensees also have a responsibility to ensure appropriate controls are in place when allowing advice on options to be provided to retail clients. Further, ASIC expects licensees to conduct comprehensive reference checks prior to appointing authorised representatives to ensure they are suitably qualified and can provide appropriate advice to clients’, Mr Kell said.

Background

Under section 920A of the Corporations Act 2001 ASIC may make a banning order against a person if the person has not complied with a financial services law, if ASIC has reason to believe that the person is likely to contravene a financial services law or if the person has been involved in the contravention of a financial services law by another person.

Mr Wilkins was banned on 5 September 2014. Mr Wilkins appealed to the Administrative Appeals Tribunal (AAT) for review and stay of ASIC’s decision and was granted a conditional stay on 16 October 2014. Mr Wilkins withdrew his application in the AAT on 12 February 2015. His banning from financial services remains in effect until 8 January 2020.

Last updated: 30/03/2021 09:37