Sam Henderson has copped the charges following an ASIC investigation, which related to alleged false representations that he had made saying he had a Master of Commerce.
ASIC has claimed that Mr Henderson, while a senior adviser and director of Henderson Maxwell, engaged in dishonest conduct when he made false representations that he had the qualification in PowerPoint presentations he gave to prospective clients from 2010 to 2016, on the Henderson Maxwell website from October 2012 to August 2016, in Henderson Maxwell brochures distributed between 2013 and 2016 and in an Information Memorandum dated May 2011.
Each dishonest conduct offence under s1041G of the Corporations Act 2001 carries a maximum penalty of 10 years’ imprisonment or a fine of up to 4,500 penalty units.
ASIC has also alleged that Mr Henderson breached s952D(2)(a)(ii) of the Corporations Act in 2014 and 2016 by giving at least two clients a financial services guide that contained the false representation that he held a Master of Commerce (Financial Planning).
An s952D(2)(a)(ii) Corporations Act offence carries a maximum penalty of five years’ imprisonment and/or a fine of up to 200 penalty units.
The charges have followed ASIC’s investigation into Henderson Maxwell and Mr Henderson, after evidence of misconduct was presented during the royal commission.
Mr Henderson and the firm were the subjects of a “Bad Advice” case study during the Hayne commission.
In July last year, ASIC banned him from providing financial services for three years. The regulator ruled he had failed to act in the best interests of his clients, provide appropriate advice and prioritise clients’ interests when providing financial advice – leading to clients either losing money or being at risk of doing so.
ASIC deputy chair Daniel Crennan commented, “ASIC is dedicated to improving standards across the financial services industry.
“These charges demonstrate that ASIC will investigate allegations of breaches of the law by financial advisers when dealing with their clients, including allegations of giving inaccurate and dishonest information.”
The charges against Mr Henderson were mentioned at the Downing Centre Local Court on Tuesday.
Mr Henderson did not enter a plea and the matter will next come before the court on 4 August.
The Commonwealth Director of Public Prosecutions is prosecuting the matter, following a referral of a brief of evidence from ASIC.
I note the alleged offences occurred between 2013 and 2016!!! This again reflects that ASIC are just not up to the job.
Asleep at the wheel seems to have been raised in the past. If any damage resulted it may be hard to find reliable evidence. But the paperwork was “not right” so “off with his head”.
This reflects poorly on every FPA member. I just don’t understand how the CEO could possibly have kept his job.
Advisers here whinge about over regulation and that CEO’s continued tenure and support by FPA members justifies over regulation. Don’t be offended when the public call you used Salesmen/women because, face up to it, that’s what YOU are. Any other profession this would have been quietly pushed under the rug, not in our industry it’s front of page and usually we’re there- deflecting attention away from some institution. Why are you wasting your time doing exam and study to keep doing the same old same old. Professionalism and the FPA don’t exist simply don’t renew.
Sam did the wrong thing- that’s clear, however this is purely ASIC kicking the small guy to deflect their incompetence or better put, their unwillingness to identify and target big banks and the conduct of the individuals at top level. Remember, ASIC refused to release their gift register for fear of critism of all of the wining & dining, as well as corporate box action they’ve received over the years.
I agree with the charges against Sam but when do we see the same heavy hand used against the big four and AMP. Surely when you compare the financial loss to clients and general wrongdoing the big end of town are the worst performers. Seems to me like they have a cozy arrangement with ASIC while the smaller fish are being offered up at the altar of public sacrifice to appease the media. Meanwhile, the big player cheat and steal with impunity
Hopefully, this case is a warm up for the NAB/NULIS/Nicole Smith matter from the RC.
Now there’s a big fish for you. It’s on the hook. Will they reel it in? I am betting yes.
I hope you are right Angler, but I will be very surprised if there is any action taken.
The RI Advice (Doyle) case from the RC is currently before the Courts with ASIC having taken action already. That might ruin some careers, and deservedly so. This case just hasn’t been reported widely – hence lots of “small fish” comments at this forum. When the judgement from the RI case is handed down that will definitely get reported. RI Management are now at IOOF.
The bigger fish are getting landed – carved and served as sashimi.
mmmm, RI advice will likely have to pay a penalty, but the big fish (ie the executives that are paid well to oversee these companies) will likely remain untouchable. Hope I’m wrong.
exactly. When are the big fish at CBA like Perkovic and the rest going to have their door knocked on by ASIC. Funny, any mention of CBA execs by name here seems to get the comment moderated.
It’s a slightly different game when FEW are concerned as holding them to account does not seem to sit well with the current social agenda.
It’s ridiculous that a regulator can say they’re improving the quality of advice when the “education” they demand we have has no practical application to the job, nor does it help improve the quality of advice nor client outcomes one bit. Needless to say having Potential penalties as disgustingly overreaching as 10 years for such things is just absurd and a sign of the nanny state ASIC have caused the financial services industry to be in this country. You’d get less time for running over the Commissioner in a bus.
Hmmmm………..??
This poor guy… He’s been banned, let him rest. Ok ok it’s bad about the degree but Jesus let him be.
He is going to be a lot poorer shortly! Go full on at him, his appearance at the RC highlighted not only his deceit, but it was entrenched in his office and staff. His advise was going to leave the client at the RC who provided evidence against Sam Henderson significantly financially worse off. Now he will be significantly financially worse off. You reap what you sow.
Ok you’re clearly jaded… This is not how you fix an industry in general. The whole advice model will be wiped out soon and I can’t believe no one can see it coming… You don’t hang people publicly like this, no other industry has to go through this AT ALL.
If you stand up for this behaviour you’re contributing to a very sad and bleak future.
Anon, it’s called the judicial system, if you can’t handle being charged and going to trial in a public transparent domain, don’t commit the crime. It’s not that difficult.
I don’t know why people are defending someone who is lying about their qualifications that’s not a small mistake it’s a serious breach, if you are going to lie about that what else will you do.
So he should face serious punishment.
Imagine if your doctor/lawyer/accountant lied about having a relevant degree and was unqualified in their field would you say oh that’s fine that’s a small mistake, no way you would want some criminal penalties applied to them not just some slap on the wrist fine or civil penalty.
Stop defending the wrong doers in this industry it makes people from the outside think we are happy to cover up mistakes of colleagues and that’s exactly why we have so much regulation because no one trusts financial planners to do the right thing and call out people who are committing crimes in our own industry
I don’t believe your example applies here. As far as I know Sam was a qualified adviser, it was the bit about the Masters which was a lie. Your example uses an unqualified doctor, which is not the same as Sam’s case (afaik).
The issue is why did he fudge that he had additional qualifications when he didn’t? Get it?
What a shame there are advisers in this industry who conduct themselves in an inappropriate manner.
What a bigger shame that advisers in this industry, based on comments below, attempt to ignore the inappropriate conduct of rogues such as Sam Henderson, and then wonder why our industry is subjected to so much scrutiny.
I dont like Sam Henderson much (but ive never met him and am obviously biased by the media coverage). I dont like what he did to this client and probably many others, however any penalty outside a financial penalty is absurd. He should be given a chance to pay the clients he mistreated out and be able to avoid jail time. Obviously a ban is in order.
Just think what happened to BT when they provided (and continue to do so) Full Advice under the guise of general advice. Nothing
What happened to CBA when they laundered money for terrorism. a fine and noone got in any trouble at all
what happened to CommInsure when they pressured doctors to change their statements to decline claims – Nothing and the whistle blowers career destroyed
I could go on and on and on. It seems like the banks and major institutions could actually murder their clients and get a slap on the wrist and advisers get strung up for everything.
Who are the regulators go after when all the financial advisers are gone and they are forced to deal directly with the public themsleves.
Totally agree with your comment. Throw the head honchos from AMP , IOOF, BT CBA who were also questioned at the RBC in jail.
Let the man (or women ) without sin cast the first stone
Agree completely. To re-phrase, let the ASIC officer who has not exaggerated their qualifications, experience or expertise throw the first stone.
Look forward to seeing ASIC staff punished harshly and publicly for false statements.
Or for that matter, the ASIC officials who knowingly lied (and continue to do so) on official reports to parliament and the gov regarding any thing to do with financial planners. LIF, complaint numbers, bad advice statistics have all been knowingly misrepresented by ASIC officials to the government and has widely affected every planner and advice body in Australia (except industry union super of course). These falsehoods, lies and fraud committed by ASIC go un-investigated and unfortunately unpunished. Pity the scum at ASIC who lie so easily aren’t prosecuted, penalised and banned from their occupations as well!!!
Good, i hope Sam Henderson gets jail and a massive fine for misrepresenting his qualifications and for giving out such bad advice. Thankful The Fair Work Commissioner did her research and did not lose her money listening to him and that she bravely took the stand against him. Powerful moment in the Banking Royal Commission.
wonder where you come from anonymous . Sam was the fall guy because he had a profile . Yes what he did was stupid and yes dishonest but I would love to look at your past and give you a brave character assessment
He gave sh1t advice and knowingly misrepresented his qualifications.
That’s not a “fall guy” – that’s the behaviour of a fool. Pretty simple.
You must be from Sydney I reckon.
it was hardly brave, she is/was a highly paid and I’m assuming intelligent public servant that didn’t lose any money. I’d say more so vindictive (her right as well). It would’ve been ‘brave’ had someone with less stature, less knowledge of ‘the system’ to have challenged a so-called media personality come adviser.
No doubt Sam Henderson acted dishonestly, but a potential sentence of 10 years for each offence…..that is just insane. If he gets the maximum sentence for each offence (yes, unlikely to happen) he could get 40 years in jail! For the heinous crime of pretending he had a Masters degree. That is plain crazy. You could do less time for murder.
Maybe it was not such a good idea to have a crack at ASIC on a webinar after he was banned
good work! You either do the study time or time in jail! No compassion about this at all. Still paying off my master degree after 8 years!
Good on you Mick, all advisers NEED a masters to interpret today’s regulations. ps it must’ve been an expensive Masters? I hope it meets the FASEA requirements!!!