According to an Australian Securities and Investments Commission investigation, Murray John Priestley, former chief executive of the Lifestyle Group, provided misleading statements and engaged in deceptive conduct regarding the controversial ‘Elite Investor’ product.
Priestley allegedly guaranteed clients profits in excess of 5 per cent per month for the Elite Investor product, when “he had no reasonable grounds for making the representation”.
In addition, he provided misleading information to clients regarding the ‘Aussie Rob Lifestyle Trader’ software developed by former owner of the Lifestyle Group, Gold Coast entrepreneur ‘Aussie’ Rob Wilson.
While the Lifestyle Investor Services entity within the Lifestyle Group was licensed to provide financial product advice between August 2008 and July 2012, Priestley was also found to have claimed a company called Lifestyle Private Wealth was licensed to provide financial advice when in fact it wasn’t.
“This matter shows that company officers in the financial services industry, as important gatekeepers, need to ensure that any promotional information provided about their products is factually correct and does not mislead consumers,” said ASIC deputy chairman Peter Kell in a statement.
The AFS licence of LIS was suspended in February 2012 and cancelled in July 2012.
Great ASIC approves these people, insist on P.I insurance and when they cause investor loss it is the ethical advisers that are left to pay the higher premiums for the characters ASIC let into the system ! So it seems ASIC is the reason our P.I has increased so much !
Only three years!!
These people should never have been allowed into the industry. All they do is make it harder for those who are doing the right thing in giving customers good sound advise thats helps them grow a portfolio, and not rip clients off.
While this person has been punished, there are others out there still doing it.
And all other advisors will pay the price again.
I have to agree with the other comments here. Banning someone for three years is no punishment. Paying back all the money to the people that bought their product based on the misleading representation is more in line, and yes jail for a few years might be appropriate. ASIC will not be able to stop these people until they get tough, as they know all they get it a slap on the wrist and told they are a bad boy. Then they go and do it again, and again as they make lots of money from misleading people. Enough is enough!
Abysmally inadequate punishment from our “Toothless Tiger”.
Given the atrocious behaviour of this shyster nothing less than life would be apppropriate.
I think 3 years is insuffient. How many investors were duped in the past? ASIC – toothless tiger.
Wow, that’s showing ’em how tough ASIC is. You’ve been found guilty of driving through red lights for the past three years so your punishment is….you’re not allowed to drive through any more for the [b]next[/b] three years!! That’ll teach you! After that, you’re free to go back doing it again?
Gee, wonder if ASIC has the guts to ban a certain other (unnamed)General Manager in the press lately for systemic culture problems…
Banned for three years from doing what he should not have been doing for the last three years.
Ouch