On Friday 7 June, it emerged that Murray John Priestley, former chief executive of now-defunct Queensland-based company the Lifestyle Group – the parent entity of former AFSL holder Lifestyle Investor Services (LIS) – was banned by the Australian Securities and Investments Commission (ASIC) for a period of three years after an investigation found evidence of misleading product advice.
The ASIC investigation found Mr Priestley had guaranteed clients profits in excess of 5 per cent per month for use of the ‘Elite Investor’ product, when “he had no reasonable grounds for making the representation”, and had also provided misleading information around his licensing arrangements.
A number of respondents reacted strongly to the news, with many voicing the opinion that the sentence was too lenient and not proportionate to the acts.
“Banning someone for three years is no punishment,” said investment analyst Dale Gillham of Wealth Within.
“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 is a slap on the wrist.”
Another commenter lamented the “abysmally inadequate punishment”, adding that “given the atrocious behaviour… nothing less than life would be appropriate”.
“Banned for three years from doing what he should not have been doing for the last three years. Ouch,” said another sarcastically.
Yet another respondent raised the issue of the impact of ASIC bans on rising professional indemnity insurance premiums.
The AFS licence of LIS was suspended in February 2012 and cancelled in July 2012.
I cn,t tell you as an accountant how many clients I have had , especially the elderly and the vulnerable who have trusted the banks and lost heaps when they have been coerced into inappropriate growth investments , when in fact they were very conservative . I studied financial planning as a result and now make it a point to challenge and if possible to refer every such event to the ombudsman. I suspect there is a business model here for anyone who wants to specialize in this field alone.
I was a Planner with one of the Big Four Banks (in fact initiated and established the Personal Investmnent Centres of this Bank) and we did not have targets, but did have an APL of about 200 products UNTILthe Bank established a “mutual agreement” with the Insurance arm of a well known Insurer and that was the begining of the end. I left it in 1996 after 20 years of which 11 had been involved in P)lanning.
I then went to another of the Big Four and lasted only five years because of the lack of ethics, the targets and the general lack of business acumen.
I have been on my own for 9 years, it has been a battle but at least I can sleep with a clear conscience that I am doing the best for the clients.
Never trust bank planners. They are merely salesmen & they are required to sell the banks tell them to sell. Their seniority only tells you how much they have sold or how good they connect with the management. The is no doubt that some are good talker & great with relationship, however technical capability and relationship are two different things.
Absolutely a joke for such penalty which would be hardly define as one.
This is just a more severe case for breaches & worse situation is that big banks’ sales culture which posts a bigger threat.
As a person whom has been in a position with a well known bank that has lost to date some $900,000
Of my wife & mine this penalty is a joke