ASIC Bans Former Financial Advisers for Providing Inadequate Superannuation Advice

Australian Securities and Investments Commission (ASIC) has taken measures to prevent two former financial advisers, Rocco D'Amelio and Robert Crossing, from engaging in financial services activities for an extended period. The warning stems from the advisers' actions, which involved providing high-risk investment advice to clients, resulting in significant financial losses. The issue came to light after ASIC discovered that the advisers gave clients inadequate investment recommendations and included false statements in their statements of advice, likely leading to financial harm to their clients.

Key Takeaways:

• ASIC has banned Rocco D'Amelio and Robert Crossing from providing financial services for 7 years and 6 years, respectively, due to their involvement in inadequate superannuation advice.
• The advisers recommended clients invest most of their superannuation in the Shield Master Fund, which is a high-risk investment with a limited trading history.
• ASIC discovered that the advisers made false and misleading statements to clients, including claims that the Shield Master Fund had a higher performing track record compared to other superannuation funds.
• The commission has reason to believe that the advisers lack the necessary training, competence, and adherence to financial services laws.
• The decision has been recorded in the Banned and Disqualified Register, with the right to appeal the decision to the Administrative Review Tribunal.

Statistics:

• 7 years: duration of Rocco D'Amelio's ban.
• 6 years: duration of Robert Crossing's ban.
• 2: number of former financial advisers banned by ASIC.
• 10+: number of clients potentially affected by the inadequate advice.

Sources:

• ASIC news release.