ASIC bans former Spectrum Wealth financial adviser

Maria Nikolova

Jane Elizabeth Myers has been banned from providing financial services because she did not act in her clients’ best interests or provide advice that was appropriate to their circumstances.

The Australian Securities and Investments Commission (ASIC) today announces that it has permanently banned Jane Elizabeth Myers from providing financial services.

The imposition of the ban follows an ASIC surveillance of Ms Myers when she was an authorised representative of Spectrum Wealth Advisers Pty Ltd between October 2013 and March 2017.

Ms Myers claimed that she was only facilitating the establishment of self-managed superannuation funds (SMSFs) for her clients, rather than providing financial product advice. However, ASIC’s surveillance found that Ms Myers gave her clients financial product advice recommending they establish SMSFs and roll over their existing superannuation into SMSFs. In doing so, she did not act in her clients’ best interests or provide advice that was appropriate to their circumstances.

In particular, Ms Myers was found to have failed to:

  • identify her clients’ relevant circumstances;
  • investigate whether the SMSF would achieve the clients’ financial objectives beyond their desire to purchase property;
  • reasonably inform her clients of all associated costs of holding a property within an SMSF; and
  • provide her clients with statements of advice.

ASIC determined that Ms Myers is not adequately trained or competent to provide financial services and that she is likely to contravene a financial services law in the future. Her conduct demonstrated serious incompetence and irresponsibility, the regulator said.

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

Let’s recall that, in February this year, ASIC imposed a six-year ban from the financial services industry on Mark Schroeder, a former director, chief executive officer, responsible manager and a key person for Spectrum Wealth Advisers Pty Ltd.

The ban is imposed due to Mr Schroeder’s his role in numerous compliance failures by Spectrum. ASIC found that Mr Schroeder, as the most senior manager at Spectrum and the person primarily responsible for its activities and day-to-day management, was involved in Spectrum’s contraventions of financial services laws.

The regulator also believes that Mr Schroeder is likely to contravene a financial services law in the future because of his involvement and responsibility for Spectrum’s failures and because of his poor understanding of the obligations of providers of financial services, particularly regarding compliance matters.

Read this next

Executive Moves

TopFX promotes Omar Al-Janabi to head of sales and business development

Prime brokerage firm TopFX has strengthened its Middle East operations with the promotion of Omar Al-Janabi, who is taking on an expanded role as global head of sales and business development.

Retail FX

Plus500 says 2022 revenue to be ‘significantly’ ahead of analysts’ estimates

Israeli-based, but London-stock market listed Plus500 said it expects annual revenue and earnings to be ahead of analysts’ estimates even as trading levels normalised from record volumes in the first quarter.

Digital Assets

Crypto derivatives giant BitMEX launches spot market

Crypto exchange BitMEX is looking to branch out of its singular focus on crypto derivatives with a suite of new product offerings. Although derivatives are to remain at the heart of BitMEX’s business, the popular platform will add spot crypto trading as it aims to aggressively grow their user base.

Uncategorized

PrimeXM reports mixed trading volumes for April

PrimeXM has reported weaker trading volumes for April 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Digital Assets

DLT Finance approved by BaFin to support brokerage and custody of digital assets

DLT Finance is already partnered with big names within the digital asset space, including Kraken, Bitstamp, B2C2, and Bittrex.

Institutional FX

LUKB taps vestr to launch actively managed products, AMCs

The partnership with vestr goes to show the growing importance of digitising the active investment management space.

Digital Assets

Jewel taps Tokeny to launch stablecoin-as-a-service solution on Polygon

Jewel aims to offer a stablecoin-as-a-service solution to other digital asset and financial institutions B2B, allowing those businesses to provide cheaper, easier and near real time payments with stablecoins issued and redeemable directly at the bank level at Jewel.

Industry News

SEC charges $410+ million Ponzi scheme with pre-IPO shares

We allege that the defendants deceived investors about the pre-IPO shares they held, how much they were charging in fees, and who was controlling the business—all while paying themselves more than $75 million.

Industry News

FNZ taps data analytics GIST to address ESG ratings bias

The allocation of capital is critical to driving the change required to transition to net-zero and building a more sustainable economy and society.

<