ASIC has banned David Neil Wilkins of Springwood, Queensland, from providing financial services for a period of five years and being found to have engaged in misleading conduct.
At the time of the misconduct, Mr Wilkins was an authorised representative of RBS Morgans and was subsequently licensed by Romad Financial Services – which had its licence cancelled in 2011 – and MDS Financial Planning, according to ASIC documents.
An ASIC investigation found that Mr Wilkins had “provided inappropriate advice to clients about trading in options and failed to make appropriate inquiries about the relevant personal circumstances of those clients”.
He was also found to have “engaged in conduct regarding a financial product or a financial service that was misleading or likely to mislead by representing that options trading carried little to no risk”.
ASIC deputy chairman Peter Kell said the case was a reminder that “trading in options is complex, can be very risky and is not appropriate for all clients”.
Oh Dear, if only he had done more course from the FPA.
This is one reason why Accountants should be extremely circumspect about signing Sophisticated Investor Certificates.
The adviser or broker thereby avoids a significant amount of disclosure, risk information and paperwork that would otherwise be required for a retail investor. Most of the time having them categorized as sophisticated is motivated by the adviser’s sheer laziness.
Just because someone has plenty of money doesn’t make them sophisticated.
When it all goes pear-shaped any smart lawyer will not only seek damages from the adviser but the accountant who signed them off as sophisticated.
Advisers and brokers are the first ones to shout the loudest about what an Accountant can or cannot say, yet they expect us to cover their backsides this way.
If you are an Accountant, think twice before risking your practice on something that your PI probably wont cover.