Former Melbourne financial adviser banned for life from providing financial advice

Australia's ASIC has banned a Victorian-based adviser from providing financial services for engaging in misconduct which included dishonestly borrowing money from his clients’ SMSF accounts and using them for his own personal expenditure. Spanning eight years, Mr Michael was an authorised representative of Marigold Falconer International Pty Ltd and Allied Financial Solutions Pty Ltd through his business RM Wealth Management Pty Ltd.

ASIC’s investigation found that between April 2012 and September 2018, Mr Michael had engaged in dishonest and misleading and deceptive conduct by procuring loans from four of his clients’ SMSF accounts totalling $204,000. The loans were used for his own personal expenditure which included staving off bankruptcy, paying private school fees, gambling and general expenses.

ASIC also found that Mr Michael: 

• failed to disclose commissions on financial investments that he recommended and implemented on behalf of clients;
• recommended financial investments without disclosing that a conflict of interest existed;
  
• failed to prioritise his clients’ interests ahead of his own;
• failed to act in the best interest of his clients in relation to loans procured from clients and recommending high risk investments which were contrary to clients’ risk appetites;
• failed to provide clients with statements of advice, product disclosure statements and fee disclosure statements; and
• engaged in unlicensed financial advice beyond the cessation of his authorisation as a financial adviser.

Full ASIC release