TWO WA advisers permanently banned

NEIL Charles Manning of Marmion and Gregory Bernard Clements of Kallaroo have been permanently banned from providing any financial services.

Both were banned after the Australian Securities and Investments Commission found they carried on financial services businesses without holding Australian financial services licences and were not complying with the financial services law.

Mr Clements was also banned after it was found he had not performed his duties as an authorised representative efficiently, honestly and fairly.

Mr Manning provided financial product advice and dealt in a financial product in relation to EC Trust Co, an offshore company incorporated in Labuan, Malaysia.

Mr Clements was an authorised representative of National Australia Bank from October 15 1998 to January 24 2003 and operated as a financial planner and adviser.

During 2002-03 he provided financial advice to EC Trust Co, which was unrelated to his employment as a financial planner at NAB.

Mr Clements is no longer employed by NAB.

The ASIC investigation found that at least 17 investors from Western Australia had made debenture investments in or through EC Trust Co.

The investments amounted to an approximate value of $1.5 million with claimed returns exceeding 50 per cent and a minimum ‘guaranteed’ return of 9 per cent.

ASIC found that Mr Clements provided his advice without holding an Australian financial services licence.

It also found that over the 2002-03 period Mr Clements repeatedly failed to have a reasonable basis for making recommendations to a significant number of clients.

ASIC deputy executive director of enforcement Mark Steward said the promise of high returns, especially when the investment was in an unknown overseas trust, exposed investors to risk.

"Investors should not seek advice or act on the advice of unlicensed financial advisers," he said.

"Remember, no license means no protection so our advice is simple – deal only with businesses that hold an Australian financial services licence."

Mr Manning and Mr Clements have the right to apply to the Administrative Appeals Tribunal for a review of the ASIC banning orders.