Queensland-based AFSL director Nigel Flowers, who headed up boutique advice firms Flowers Financial Group and Flowers Financial Management (now in liquidation) has been banned from financial services and credit activities, the corporate regulator announced yesterday.
The former adviser ran his business from Sydney for 25 years and specialised in providing advice to the medical profession, according to an ASIC statement, until an ASIC investigation found improper use and distribution of client money.
“Mr Flowers engaged in a scheme to raise money to fund a proposed initial public offering (IPO) by Avior Australia Ltd (Avior). The scheme raised $1.475 million,” the ASIC statement explained.
“Mr Flowers raised funds from long-term clients of Flowers Financial Management. He established a trust account, ‘1Source Wholesale Investments Pty Ltd ITF Avior Pre-IPO Trust’ (trust account) to which he was the sole signatory, to collect his clients’ funds.
“ASIC found that between February 2011 and March 2012, Mr Flowers improperly disbursed at least $720,331.70 from the trust account. Of these disbursements, at least $696,138.20 was paid to entities related to Mr Flowers.
“Following cancellation of the IPO, Avior returned $30,000 to the trust account with the intention that it be returned to investors. ASIC found that Mr Flowers improperly disbursed over $29,000 of this $30,000 from the trust account, with at least $27,000 of these disbursements paid to entities related to Mr Flowers.”
ASIC’s investigation is ongoing.
ASIC needs to do a lot more to repair the damage whilst it was sleeping for the past 10 years. No accolades for ASIC doing its job… We don’t get pats on the back for doing ours. ASIC has done alot of damage which now needs repair and is only doing so because now the Senators are on to them.