ASIC has announced that a former dealer group director’s ban has been broadened following an appeal to the AAT.
In February 2020, former Spectrum Wealth Advisers director Mark Schroeder was banned from providing financial services for six years by ASIC for his role in numerous compliance failures.
However, after an appeal of the decision to the Administrative Appeals Tribunal, it was confirmed on Tuesday that the ban has been broadened to Mr Schroeder not being allowed to provide any financial services and performing any function involved in a financial services business, as well as controlling an entity that carries on a financial services business, for six years.
In its decision, the tribunal said “Mr Schroeder was not a fit and proper person to provide financial services, was involved in contraventions of financial services laws by Spectrum, was not adequately trained or competent to manage the provision of financial services and may be involved in the contravention of financial services laws in the future”.
“The decision is a clear reminder to officeholders that they cannot disclaim responsibility for their regulatory obligations and must faithfully, competently, fearlessly and diligently discharge their roles,” ASIC commissioner Danielle Press said on Tuesday.
Following Mr Schroeder’s ban in 2020, ASIC found that Spectrum failed to audit its representatives regularly and ensure that its representatives were adequately trained and competent.
In addition, Spectrum did not have sufficient human and technological resources to meet its licence obligations.
The tribunal noted this week that Spectrum’s failure to monitor and supervise its representatives was “indicative of a culture that promoted growth over compliance”.
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