16/10/2008 - 16:42

ASIC bans Westpoint financial advisor

16/10/2008 - 16:42

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The corporate watchdog has banned Dalkeith man Pierre Schinazi from providing financial services for five years over his role in the collapse of Westpoint.

The corporate watchdog has banned Dalkeith man Pierre Schinazi from providing financial services for five years over his role in the collapse of Westpoint.

Mr Shinazi, who was the sole director and responsible officer of Ascare Financial Services Pty Ltd, is the nineteenth licensd advisor to be banned by the Australian Securities and Investment Commission in its Westpoint investigations.

ASIC found that between 2002 and 2005, Mr Schinazi misled clients concerning the features and risks of Westpoint products, and did not have a reasonable basis for making those recommendations.

ASIC said the majority of his clients lived in the Perth metropolitan area.

 

Below is the ASIC announcement:

 

ASIC has banned Mr Pierre Albert Schinazi of Dalkeith in Perth, from providing financial services for five years.

Mr Schinazi was the sole director and responsible officer of Ascare Financial Services Pty Ltd (Ascare). Ascare held a Securities Dealers licence from 17 January 1997 to
10 March 2004 and an Australian Financial Services Licence from 10 March 2004.

Mr Schinazi provided financial services to members of the public as a proper authority holder of Ascare from 22 January 1997 to 10 March 2004 and as a representative of Ascare since 10 March 2004.

An ASIC investigation found that, between August 2002 and August 2005, Mr Schinazi:

- made statements to clients that were misleading or deceptive, or were likely to mislead or deceive, concerning the features and risk of Westpoint products;

- caused Ascare to provide inappropriate advice to clients by failing to reasonably consider and investigate the Westpoint products recommended; and

- did not have a reasonable basis for making Westpoint product recommendations to clients.

The majority of Mr Schinazi's clients resided in the Perth metropolitan area.

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


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