ASIC - Gains financial services undertakings

ASIC has accepted enforceable undertakings from two WA men, not to act as representatives of a holder of an Australian Financial Services Licence, for specific periods

Former proper authority holder Jean-Jacques Pierre Georges Blandin De Chalain has given this undertaking until December 31 2012.

Mr Blandin, of Dianella, has also agreed that after that date he will not act as a representative of an AFSL holder unless he has undertaken and successfully completed a financial markets course of study approved by ASIC.

ASIC alleged that, while a proper authority holder with Australian Financial Securities Pty Ltd, Mr Blandin recommended that a client invest in companies with which he was associated or had an interest, without properly disclosing that association or interest.

The client subsequently sustained a loss of approximately $120,000 due to the insolvency of the company with which Mr Blandin was associated or had an interest.

Michael Bradley Curtis has given ASIC an undertaking similar to that of Mr Blandin, but for a period of four years.

After the four years, Mr Curtis will not be entitled to become a representative of an AFS licence holder unless he has undertaken and successfully completed a financial markets course of study approved by ASIC.

Mr Curtis, of Bicton, was an authorised representative of Commonwealth Bank Financial Services, formerly Colonial Financial Services, and worked as a financial adviser between November 1994 and February 2002.

An ASIC investigation found that Mr Curtis transferred the superannuation funds of more than 70 clients between Colonial investment products, to maximise the commission that he would receive.

Mr Curtis received $190,000 in commissions as a result of the ‘transfers’, commonly known as ‘churning’.

Colonial reimbursed the clients affected by the conduct of Mr Curtis, who has in turn compensated Colonial for this reimbursement.