AFSL director cops 7-year ban

In a statement, ASIC said it had banned the former director of Olive Financial Markets, Scott Morrison, from financial services for seven years.

Mr Morrison was the director of Olive Financial Markets from 2013 to 2019, and ASIC found he had failed to act in the best interests of the firm’s clients, was not competent to provide financial product advice, was likely to contravene financial services law, and was involved in misleading or deceptive conduct on the firm’s behalf.

The firm, which was involved in the provision of managed discretionary accounts and super rollovers, also had its licence cancelled by ASIC on 16 March. However, Olive applied for a review and stay of ASIC’s decision the following day, and as a result the AAT granted the stay on 23 April.

The conditions of the stay were that Olive not accept any new clients while the tribunal was reviewing ASIC’s decision, and that Olive notify its clients of the situation with the ASIC case.

In cancelling Olive’s licence, ASIC found the firm had failed to ensure it provided financial services fairly, honestly and efficiently; had engaged in unconscionable conduct; had engaged in misleading or deceptive conduct; had failed to take reasonable steps to ensure its authorised representatives acted in clients’ best interests; did not ensure its representatives were adequately trained; and did not have a compliant dispute resolution system.

It had also breached hawking prohibitions, as its super rollover business involved authorised representatives making cold calls to clients and advising they roll over their super from their existing fund to one managed by Olive on the HUB24 or Netwealth Investments platforms, ASIC said.