The Federal Court has set aside the decision of the AAT not to ban financial adviser Robert Hutchison following an appeal from ASIC. The AAT ruled that Mr Hutchison breached his contractual obligations with his licensee – RI Advice Group – by not passing on the money he received directly from his clients to RI Advice.
However, the AAT found that sections of the Corporations Act prohibiting dishonest, misleading and deceptive conduct did not apply to this conduct because it related only to the agreement between Mr Hutchison and RI Advice, not the service being provided to clients.
“The Court disagreed, confirming the broad scope of these prohibitions,” ASIC said in a statement. “The Court confirmed that an indirect connection between a person’s dishonest or misleading conduct and a financial product or service is sufficient for the prohibitions to apply.”
The matter has been remitted back to the AAT to have the matter re-determined.
Mr Hutchison was permanently banned from providing financial services on 11 June 2017.
Sounds like fraud so you can’t really argue. Now to do the same to the large licensees.
[quote=Frustrated]what a joke, ASIC has probably ruined this guy and his family just so it isn’t seen as a bad loss to the public. He was given a lifetime ban which was overturned by the AAT who took a full week to understand the case and reverse the banning. No wonder so many advisers are leaving the industry[/quote][quote=Frustrated]what a joke, ASIC has probably ruined this guy and his family just so it isn’t seen as a bad loss to the public. He was given a lifetime ban which was overturned by the AAT who took a full week to understand the case and reverse the banning. No wonder so many advisers are leaving the industry[/quote]
[quote=dr doolittle]true story. i was aware of an GP who had swiped medicare cards at an average of 1 every 30 secs. obviously he was taking the system to the cleaners however all he received was a caution. [/quote][quote=dr doolittle]true story. i was aware of an GP who had swiped medicare cards at an average of 1 every 30 secs. obviously he was taking the system to the cleaners however all he received was a caution. [/quote]
What a JOKE! So this guy withheld payments from his Licensee – Yes this is dishonest.
BUT, what about AMP and other product providers withholding Grand Fathered commission payments from Advisers prior to the date legislated being 1 Jan 2021???????
Read the case details before jumping into the conclusion. He banked clients cheque directly to personal bank account then charge them again at platform. He misled or deceived his clients by
failing to disclose to them that they had been double charged advice fees and failed to comply with the proper process for remitting and reporting the fees.
Yet some advisers get done for bad advice and fraud and get 3 year bans
So Advisers are being banned for the choices they make in business activities that don’t necessarily affect the best interests of their clients, or client-outcomes? What’s next – ASIC banning Advisers for their choices of meat vs vegetarian, or suits vs casual, Apple vs PC?
Spot on no fraud or anyone hurt here
meat, suits, pc’s, 150 lashes, skinny cappucino, android, mazda, broncos, supreme, folder, grower, beatles – that’s me
So AMP breaching BOLR contractual agreements can also trigger a Corporations Act contravention prohibiting dishonest, misleading and deceptive conduct? The contractual agreement just needs an indirect connection to a financial product. Shame no one from licensee land ever gets banned though.
Clearly a dodgy adviser not deserving of being in the industry regardless of the indirect client connection to the issue of paying his licensee.
Absolutely correct. His activity , indirect or not, goes to the integrity of the industry and all advisers.
what a joke, ASIC has probably ruined this guy and his family just so it isn’t seen as a bad loss to the public. He was given a lifetime ban which was overturned by the AAT who took a full week to understand the case and reverse the banning. No wonder so many advisers are leaving the industry
Doctors do not get permanently banned for ripping off the Medicare system. This industry is ridiculous.
true story. i was aware of an GP who had swiped medicare cards at an average of 1 every 30 secs. obviously he was taking the system to the cleaners however all he received was a caution.