Ross Andrew Hopkins was sentenced in the District Court of NSW after being convicted of 15 dishonesty offences under the Corporations Act, committed when he was the sole director of QWL Pty Ltd (QWL).
Mr Hopkins – who previously pleaded guilty to all charges – misappropriated his clients’ funds over a nearly three-year period (14 October 2016 to 8 October 2019), after he was assigned to manage their self-managed superannuation accounts, and used the funds for his own personal benefit, including holidays, paying rent and paying off his own personal credit cards and loans.
“Mr Hopkins lied to his clients, and the Court’s decision demonstrates the seriousness of this conduct,” ASIC commissioner Danielle Press said.
“Financial advisers must be open and honest with their clients and if they aren’t, they face serious consequences.
“Financial advisers should always allow clients to have direct access to information about their own investments. If this is not occurring, clients should contact ASIC with their concerns.”
Acting District Court Judge Wood QC described Mr Hopkins’ behaviour as “deeply stupid”, nothing that “each of the victims trusted and relied on him for his expertise”.
Mr Hopkins is now automatically disqualified from managing a corporation for five years.
Judgement on reparation orders has been reserved until 7 July.
It bit strange that ASIC have not mentioned he was not licensed beyond July 2016.
Was he a registered financial adviser when he committed these crimes, or just a rogue member of the public?
Clearly he’d have known it was wrong to do and this sort of situation would never have occurred if only he’d studied a FASEA approved degree and Ethics course…
It wasnt ready yet….the academics were still arguing over who would write the prescribed learning text book…
I’m SURE a FARCE-IA ‘Ethics Exam’ would have circumvented this awful behaviour and cleaned these bad advisers from the streets . . .[i][/i][b] NOT.[/b][i][/i] These predators are skillful and cunning – they would nod and smile for the exam, pass it easily and then go on to do whatever the heck they decide to. Ethics exams are an insult to good adviser, a waste of their time and money AND useless in stopping or identifying these crooked advisers like Ross Hopkins. Tell you what – there’s a few politicians I’d like to see forced to take an ethics exam(!) but, sadly, it would do no good BUT politicians are not that smart so it may actually do some good and show them up for what they are.
Interesting how the escalating barrage of compliance and regulations doesn’t seem to stop these things from happening …………
Maybe, instead of so much compliance paperwork, adding costs, headaches and driving advisors out of the business. A few public education adverts advising clients on what to expect as normal and what is not from a financial advisor would be more beneficial. (As in, never transfer money to the advisor or their company, rather than the investment provider as a starter).
Problem with that, is that the adviser can appointment themselves as the authority to act on the account including withdrawing and transferring funds to a non-related Bank account. That is the first loophole that needs to be closed!
Which products allow an adviser to withdraw or transfer funds to a non related bank account?
Clearly you statement needs more thought – and try some research.
The draconian rules about fee consent from products will actually force many more advisers to require direct funds transfer to themselves rather than the product.
I appreciate this would only be for adviser fees, but the dividing line will become increasingly blurred, and the chances of accidental or deceptive transfers of larger amounts will only increase.
Spot on.
What surprises me is that on the ASIC website for financial advisers, he is listed as “Ceased” in 2016…
It’s a pity that ASIC and AFCA don’t act in the best interest……..
Do we think that’s enough ? Given the amount used and the penality enforced … seems like a mere slap on the wrist. Also, if we look at the time in which the acts were deemed to have happened .. how were they not noticed? How were they not picked up ? And more importantly, what is currently in place to ensure these clients are returned to their previous positon ? How do we ensure funds are returned accordingly ?
Was he licensed?
It’s hard to believe people like Ross Hopkins can ever think they will get away with stealing their clients money. I have seen countless examples over 35 years in this industry and it never ceases to amaze me.
Was he licensed at the time? If he was not licensed, who carers what these private individuals did with their money?
Apart from Jail time, I suspect he has gotten away with it as he was not a Financial Planner at the time therefore he was not a Financial Planner – he was an “ex-Sydney Planner”, probably an “ex school boy”, ex-Macquarie Uni student” etc, but it appear NOT a Financial Planner at the time.
Perhaps the ASIC Register is not used much by the public?
…or by our regulators?