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.

Monday 22 November 2021

21-311MR Former WA financial adviser and his company charged with dishonest conduct

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.

Last updated: 22/11/2021 12:50