Kelmscott-based adviser Anthony Hilsley has been banned from providing financial services for four years, while real estate sales representative James Mitsopoulous has been banned from working in the industry for 10 years.
Kelmscott-based adviser Anthony Hilsley has been banned from providing financial services for four years, while real estate sales representative James Mitsopoulous has been banned from working in the industry for 10 years.
Mr Hilsley was an authorised representative of RI Advice Group, formerly owned by ANZ, and more recently an authorised representative of Fiducian Financial Services.
The Australian Securities and Investments Commission said Mr Hilsley failed to comply with financial service laws by not providing advice that was in the best interests of his clients.
The regulator said he did not identify or make sufficient enquiries into his clients’ personal circumstances.
ASIC also found Mr Hilsley did not properly consider his clients’ objectives and needs, and in some cases, did not consider their existing products when providing personal advice.
For one client, Mr Hilsley recommended replacing superannuation and insurance products without taking the client’s pre-existing medical condition into account, the regulator said.
“As a result, a loading added to the premium, which could have been avoided if Mr Hilsley had considered the suitability of the client’s existing products to meet their ongoing insurance needs,” ASIC said.
“Financial advisers have a legal obligation to act in the best interests of their clients when providing personal advice.
“This includes taking reasonable steps to understand their clients’ personal circumstances and exploring existing financial products to ensure they are providing appropriate advice that meets their clients’ objectives.”
Mr Hilsley has the right to appeal the decision to the Administrative Appeals Tribunal.
Meanwhile, real estate sales representative Mr Mitsopoulous was deemed unfit to hold a certificate of registration by the State Administrative Tribunal after failing to inform Consumer Protection of an outcome pending a previous District Court trial.
In 2017, Mr Mitsopoulous received a five-and-a-half-year prison sentence after he was convicted of extortion and attempting to pervert the course of justice.
Consumer Protection said Mr Mitsopoulous and three others a year earlier had verbally abused and threatened a victim, demanding an immediate $50,000 payment.
The victim was forced to sign an acknowledgement of debt amounting to $277,000, Consumer Protection said yesterday.
The court had issued a lifetime violence restraining order in respect of the victim.
Mr Mitsopoulous was also previously charged with assault and fined $15,000 in the District Court over an incident at a kickboxing tournament in Kingsway in 2014.
Consumer Protection Commissioner Penny Lipscombe said Mr Mitsopoulous’s 10-year ban was appropriate considering the seriousness of his behaviour.
“The licensing and registration system aims to ensure that only fit and proper people work in the industry as there needs to be a high degree of trust between the sales agent and their client,” she said.
“The disclosure of pending court proceedings or criminal convictions in applications is critical in determining if they are granted or if they are renewed.
“Failing to do so is a serious breach of the law.
“While having a criminal conviction doesn’t automatically preclude someone from being a successful applicant, the nature of the convictions and when they occurred are factors that are taken into consideration.”
