A Gold Coast court has convicted a former manager after he made false claims in an AFSL application over a previous bankruptcy.
Andrew Law, of Biggera Waters, Queensland, has been convicted by the Southport Magistrates Court for making false or misleading statements in documents submitted to ASIC. Mr Law has been fined $3,000.
On 19 November 2018, Mr Law pleaded guilty to three counts of knowingly making false or misleading statements in documents submitted in support of an Australian Financial Services (AFS) licence application or involving his nomination as a responsible manager of an AFSL in December 2013, December 2014 and September 2015. Mr Law stated he had never been bankrupt when he had been made bankrupt in 2008.
Magistrate Pamela Dowse said, "It is a very serious matter in my view. You made a false statement and you put it in a statutory declaration."
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
According to ASIC, AFS licensees must maintain their competence to provide financial services. ASIC assesses this by looking at persons nominated by the applicant to act as a ‘responsible manager’ of its financial services business. ASIC requires nominated responsible managers to be competent and of good fame and character.
"ASIC's assessment of an applicant’s ability to provide licensed services efficiently, honestly and fairly, and in compliance with its financial services obligations, requires responsible managers to act honestly and truthfully," the regulator said.
"ASIC considers that if a proposed responsible manager makes false statements to ASIC, this raises serious concerns about their honesty and character. In addition, the submission of false licencing information to ASIC significantly undermines the integrity of its licencing assessment processes."
The corporate regulator said the adviser failed to prioritise his clients’ interests over his own.
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