ASIC bans two persons from providing financial services 

The Australian Securities and Investments Commission (ASIC) has issued today two announcements to inform public that the Commission decided to ban two persons in different cases from providing financial services.

According the first announcement, ASIC informs that, it has permanently banned Mr Shiv Prakash Sahay, of Lidcombe NSW, from the credit and financial services industries.

The bans follow an ASIC investigation which led to Mr Sahay being convicted on 7 July 2015 in Sydney Downing Centre Local Court on three charges of making false statements, making false documents and using false documents in home loan applications. He was sentenced to 350 hours of community service work. (refer: 15-176MR)

‘ASIC’s action against Mr Sahay shows how seriously we are about tackling loan fraud,’ ASIC Deputy Chair Peter Kell said. ‘We won’t hesitate to take strong action to remove dishonest brokers, who falsify loan documents to the detriment of their clients, from the industry’.

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

Background

On 26 May 2015, Mr Sahay pleaded guilty to three charges of:

a) making 13 false statements in loan applications submitted by him on behalf of his clients to Bankwest and Suncorp;

b) making 23 false documents in support of those false statements, mainly bank statements; and

c) using 26 false documents in loan applications submitted by him on behalf of his clients to Bankwest (a division of the Commonwealth Bank of Australia) and Suncorp Metway Limited. (refer: 15-128MR).

On 7 July 2015, Mr Sahay was convicted and sentenced to 350 hours of community service work for the above three charges.

On the second announcement, ASIC informs that following an investigation, it has banned Ms Sharnie Kent of Warialda, NSW, from providing financial services for eight years.

Ms Kent was an employee representative of Commonwealth Financial Planning Ltd (CFPL) during the time the misconduct, for which she was banned, took place.

ASIC banned Ms Kent after finding she had contravened financial services laws, was involved in CFPL’s contravention of financial services laws and was not adequately trained or competent to provide financial services.

ASIC’s investigation found that between February 2011 and February 2014, Ms Kent:

• did not provide a statement of advice to a client before providing a further financial service;
• submitted insurance applications and alteration requests that contained incorrect information amounting to conduct likely to mislead and deceive;
• wrote purported signatures of clients on insurance alteration requests and superannuation withdrawal forms amounting to conduct likely to mislead and deceive;
• advised a share brokerage fee that was not properly payable by the client amounting to conduct likely to mislead and deceive; and
• charged an excessive adviser fee, represented that the fee would be refunded and did not take timely steps to refund the free amounting to unconscionable conduct.

ASIC Deputy Chair Peter Kell said, ‘ASIC is committed to raising standards of conduct and compliance in the wealth management industry and will act to remove advisers whose conduct falls short.’

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

Background

Ms Kent is the sixth person to be banned from the financial services industry as part of ASIC’s Wealth Management Project, commenced in late 2014.

Under this project, ASIC is undertaking a number of investigations and proactive risk-based surveillances, with particular focus on compliance in large financial advice businesses.

Ms Kent’s banning follows ASIC accepting enforceable undertakings from two Queensland financial advisers, Reid Menkens, a former Millennium3 Financial Services Pty Ltd and AMP Financial Planning Pty Ltd representative, and Leo Menkens, a former AMP representative. The pair trade as Menkens Financial Group in Brisbane, Queensland (refer 15-270MR).

In March 2015, Australian Financial Planning Solutions Pty Ltd (AFPS), an authorised representative of Charter Financial Planning Limited, an Australian financial services (AFS) licensee and subsidiary of AMP Limited, paid $10,200 in penalties after ASIC issued an infringement notice for making false or misleading representations.

Source: ASIC  – ASIC bans former Commonwealth Financial Planning adviser for eight years, ASIC bans convicted finance broker

 

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