ASIC has banned a director of a Sydney managed discretionary account (MDA) services firm, following on from the company’s licence being recently cancelled and another of its directors being banned.
The most recent ban was made on Matthew McCrow of Jade Capital Partners, stopping him from providing financial services for five years from 15 January.
ASIC accused Mr McCrow of being involved in Jade Capital’s breaches, through advertising misleading returns, fees and costs, performance history and results relating to MDA strategies.
Mr McCrow had applied to the Administrative Appeals Tribunal (AAT) for a review and a stay of ASIC’s decision, which he later withdrew on 14 February.
“Mr McCrow had failed to act in the best interests of his clients or prioritise their interests,” the regulator said.
“Instead, he had recommended MDA strategies without adequately considering his clients’ goals, circumstances and financial situation or the suitability of the strategies he was recommending.
“ASIC also found that fees and cost disclosures in advice documents provided by Mr McCrow to clients were misleading.”
The watchdog also added that the company had failed to ensure Mr McCrow was adequately trained and competent to provide financial product advice about MDAs, foreign exchange contracts or other derivatives.
The banning order for Mr McCrow has been recorded on ASIC’s Financial Advisers Register.
Jade Capital’s licence had been cancelled on 11 January.
The company had held it since 2012.
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