On Thursday, the regulator said it permanently banned Peter Surtenich from providing, performing or controlling a financial services business on 6 March.
ASIC alleged that between 28 July 2020 and 14 December 2020, while a director and responsible manager of Australian financial services licensee Suetonius Wealth Management, Surtenich recommended to at least 18 clients that they invest in a “principal-protected Private Placement Program” which offered “high yield”’ returns.
The regulator said it determined that in recommending these investments, Surtenich failed to comply with financial services law by making dishonest representations that the investment was “capital protected”, was “similar to” a cash investment and could generate high returns.
“Mr Surtenich had no basis for making the representations,” ASIC said.
Moreover, ASIC determined that Surtenich lacked the necessary judgement and competence to be a financial adviser.
“ASIC found that in arranging transfer of client funds to another Australian entity to obtain a so-called ‘stand-by letter of credit’, Mr Surtenich ought to have been alerted to potential ‘red flags’ as to the authenticity of the transaction, including in relation to the payment of subsequent fees to a bitcoin wallet of an alleged banking institution,” the regulator said.
“Mr Surtenich has been permanently banned because he acted dishonestly and showed a fundamental lack of knowledge and judgement, integrity, trustworthiness and professionalism.
“These qualities are not only necessary for providing financial services but are also imperative for those who control a financial services business or perform a role in a financial services business.”
Surtenich has the right to appeal to the Administrative Review Tribunal for a review of ASIC’s decision.
