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Former AFS adviser sentenced to jail

A financial adviser formerly authorised by the now-defunct AFS Group has been sentenced to 12 months’ jail following a 2011 banning order.

Ian John Weaver was sentenced in the Southport District Court on 13 March, having pleaded guilty to three counts of “failing to have a reasonable basis for the advice” he gave to clients and one count of making a false or misleading statement.

Between January 2003 and June 2010, Mr Weaver was an authorised representative of Enhance Capital and the Salisbury Group – which was acquired by AFS in 2007.

In sentencing Mr Weaver, Judge Wall QC said the former adviser had prioritised his own interests over those of his clients.

In a statement, ASIC deputy chair Peter Kell said the strategy underlying Mr Weaver’s advice was inappropriate.

“Mr Weaver’s high risk strategy of recommending double gearing strategies to his clients, the majority who were approaching retirement age, was completely at odds with the provision of appropriate financial advice,” he said.

Mr Weaver was banned from providing financial services for a period of five years in 2011.

ifa sister title InvestorDaily first reported that AFS was facing insolvency in March 2013, before administrators were appointed to the dealer group in April of that year.