ASIC bans Morgans Financial adviser

The corporate regulator has permanently banned Queensland financial adviser Michael Gordon McIlwraith Taylor.

From 2007 to 2015, Mr Taylor borrowed approximately $1.2 million from 16 clients to fund his own investments, and in doing so "took advantage of his professional relationship with those clients" and "exposed them to high financial risks," said an ASIC statement.

"Borrowing from clients involved a conflict of interest which should have been apparent to Mr Taylor prior to him borrowing.

"Mr Taylor also failed to consider the personal circumstances of five clients when entering into an options trade on their behalf."

As a result of his actions, the regulator has determined the adviser was "not competent, inadequately trained and not of good fame and character".

In failing to comply with the law, Mr Taylor was found to have:

• "engaged in misleading and deceptive conduct" by not informing clients about proposed trading options that was contrary to a statement of advice or what the client had said to him; and
• "failed to act in the best interests of three of those five clients" by giving personal advice relating to options that were not suited to the client's circumstances.

Mr Taylor's permanent banning has been recorded on ASIC's Financial Advisers Register.