ASIC Australia bans a broker and a former financial adviser from providing financial services 

The Australian Securities & Investments Commission (ASIC), has issued a press release to inform in relation to its decision to ban broker Mr. Raghwa Nand Prasad from providing financial services and from engaging in credit activities for four years and Michael Kolody, a former financial adviser of Morwell from providing financial services for five years and six months.

For Mr. Raghwa Nand Prasad, ASIC’s investigation found that between February 2008 and March 2011, he contravened credit legislation and financial services laws and was involved in his former wife and broker assistant,Ms Prasad’s creation of false documents to secure home loans totalling more than $3.6 million.

In May 2015, ASIC banned Ms Prasad for 10 years from engaging in credit activities and from providing financial services following her conviction for loan fraud.

Regarding its decision for Michael Kolody, a former financial adviser of Morwell, ASIC found that he was not adequately trained or competent to provide financial advice and had failed to comply with the financial services laws.

Mr Kolody’s misconduct occurred between July 2010 and January 2014 when he was an authorised representative of Madison Financial Group Pty Ltd.

ASIC Deputy Chairman Peter Kell said, ‘Mr Kolody’s conduct demonstrates a clear failure to protect the interests of his clients. Financial advisers must provide appropriate advice, and they must keep adequate records that set out the basis on which the advice is given.’

Mr Kolody has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

Source: ASIC

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