Former AMP financial adviser David Michael Fong and his Perth-based company Fong Financial Planners Pty Ltd have each been charged with engaging in dishonest conduct while carrying on a financial services business.

ASIC alleges that in 2014, while an authorised representative of AMP, Mr Fong via Fong Financial Planners acted dishonestly when he:

• completed and submitted false information in clients’ insurance applications;
• failed to adequately disclose fees to clients;
• acted without client instructions; and
• failed to adequately disclose the effect of advice, for instance clients becoming uninsured after closing their superannuation accounts.

Mr Fong appeared before the Perth Magistrates Court on 19 November 2021 and was granted conditional bail.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions. It has been listed for further mention on 14 January 2022.

Background

In 2017, ASIC permanently banned Mr Fong from providing financial services or engaging in credit activities (17-204MR). Mr Fong appealed ASIC’s decision to the Administrative Appeals Tribunal and the appeal process is stayed pending the outcome of the criminal proceedings.

At the time of the offending, for an individual, the maximum penalty for engaging in dishonest conduct while providing financial advice and carrying on a financial services business was 10 years imprisonment, a fine of either $765,000 or three times the total value of the benefits reasonably attributable to the offence, or both.

At the time of the offending, for a company, the maximum penalty for engaging in dishonest conduct while providing financial advice and carrying on a financial services business was a fine of either $7,650,000 or three times the total value of the benefits reasonably attributable to the offence, or 10% of turnover in the 12-month period ending at the end of the month in which the offence was committed.

Editor's note:

On 14 January 2022, the matter was adjourned to 11 February 2022 for mention.

Editor's note 2:

On 11 February 2022, the matter was adjourned to 25 March 2022 for mention.

Editor's note 3:

On 25 March 2022, the matter was adjourned to 3 June 2022 for committal mention.

Editor's note 4:

On 3 June 2022, the charges relating to Mr Fong were administratively adjourned to 29 July 2022 for committal mention.

On 17 June 2022, the charges relating to Fong Financial Planners Pty Ltd were administratively adjourned to 29 July 2022 for committal mention.

Editor's note 5:

On 29 July 2022, the matter was adjourned to 16 September 2022 for committal mention.

Editor’s note 6:

On 16 September 2022, the matter was adjourned to 14 October 2022 for committal mention.

Editor's note 7:

On 14 October 2022, the matter was adjourned to 18 November 2022 for committal mention.

Editor's note 8:

On 18 November 2022, the matter was adjourned to 13 January 2023 for committal mention.

Editor's note 9:

On 13 January 2023, the matter was adjourned to 24 February 2023 for committal mention.

Editor's note 10:

On 24 February 2023, the matter was adjourned to 24 March 2023 for committal mention.

Editor’s note 11:

On 24 March 2023, Fong Financial Planners Pty Ltd entered a plea of guilty to three charges of dishonest conduct while carrying on a financial services business. The charges against Mr Fong, and the remaining eight charges against Fong Financial Planners, were then discontinued 23-081MR.