ob体育 has permanently banned former financial advisor Robert Shane Michael of Bentleigh, Victoria, from providing financial services for engaging in misconduct which included dishonestly borrowing money from his clients鈥� SMSF accounts and using them for his own personal expenditure.
From August 2009 to July 2017, 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.
础厂滨颁鈥檚 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鈥� 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.
ob体育 also found that Mr Michael:聽
- failed to disclose commissions on financial investments that he recommended and implemented on behalf of clients;
- recommended financial investments without聽disclosing that a conflict of interest existed;
- failed to prioritise his clients鈥� interests ahead聽of his own;
- failed to act in the best interest of his clients in relation to loans procured from clients and recommending high risk聽investments which were contrary to clients鈥� risk appetites;
- failed to provide clients with statements of聽advice, product disclosure statements and fee disclosure statements; and
- engaged in unlicensed financial advice beyond the聽cessation of his authorisation as a financial adviser.
On 26 July 2019, ob体育 found that Mr Michael had breached financial services laws and was not of good fame and character.
Mr Michael has a right to lodge an application for review with the Administrative Appeals Tribunal.
Mr Michael鈥檚 banning will be recorded on 础厂滨颁鈥檚 publicly available , which consumers can access to check the qualifications and credentials of financial advisers.
ob体育 expects financial advisers to comply with the law and adhere to ethical standards when providing financial product advice to consumers.聽 Financial advisers have an obligation to provide clients with a statement of advice (where one is required) before implementing the advice on their behalf.聽 They are required to keep proper records.
础厂滨颁鈥檚 has useful information for clients whose advisers may have been banned.