ASIC has banned former Spectrum Wealth Advisers director Mark Schroeder from providing financial services for six years for his role in numerous compliance failures in his former dealer group.
Mr Schroeder was a director, chief executive, responsible manager and a key person for Spectrum, ASIC said in a statement.
The corporate regulator found that Mr Schroeder, as the most senior manager at Spectrum and the person primarily responsible for its activities and day-to-day management, was involved in Spectrum’s contraventions of financial services laws.
ASIC said it also found that Mr Schroeder is likely to contravene a financial services law in future because of his involvement and responsibility for Spectrum’s failures and because of his poor understanding of the obligations of providers of financial services, particularly regarding compliance matters.
Following a surveillance from ASIC, it identified serious concerns about Spectrum’s compliance with its obligations as a licensee, and that it failed to do all things necessary to ensure that financial services were provided efficiently, honestly and fairly.
Further, ASIC found that Spectrum did not take reasonable steps to ensure its representatives complied with the law.
The licensee failed to audit its representatives regularly and ensure that its representatives were adequately trained and competent.
In addition, Spectrum also did not have sufficient human and technological resources to meet its licence obligations.
Shortly after being issued with a notice of hearing, ASIC said Spectrum ceased trading and its parent company, Freedom Insurance Group, applied to cancel its AFS licence.
“ASIC expects that people holding a position of responsibility with an AFS licensee, particularly directors and responsible managers, understand the obligations of financial services providers and make every effort to ensure compliance,” said ASIC commissioner Danielle Press.
Mr Schroeder’s banning has been recorded on ASIC’s publicly Banned and Disqualified Persons Register. He is continuing to seek a review of its decision at the Administrative Appeals Tribunal.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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