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ASIC takes action against NSW adviser

The Australian Securities and Investments Commission (ASIC) has commenced proceedings in the Federal Court against New South Wales financial adviser Graeme Walter Miller following misconduct involving SMSFs.

Three related businesses are also involved in the matter: CFS Private Wealth, Combined Financial Solutions and BDM Asia Pacific, formerly known as CFS Corporation, which is deregistered.

Following an investigation, ASIC alleged Miler recommended clients of CFS Private Wealth establish SMSFs and use their SMSF funds to invest in CFS Corporation, of which Miller was a director.

The corporate regulator also alleged he used investor funds for personal use and to repay other investors in CFS Corporation, failed to keep proper records of client investments in CFS Corporation, and continued to operate the bank account of CFS Corporation after it was deregistered.

Further, he submitted illegitimate life insurance applications to insurers in order to receive commissions in circumstances where the insureds had not instructed him to submit applications on their behalf and were unaware he had done so, and he may be continuing to provide financial services and/or raise funds from clients.

The regulator also alleged the respondents appear to have insufficient assets to repay investors in CFS Corporation and CFS Private Wealth has failed to lodge its financial accounts for the 2016 and 2017 financial years.

It is seeking orders to restrain Miller from providing financial services, prevent the respondents from dealing with assets or investor funds, wind up the companies and appoint a liquidator, and disqualify him from managing corporations.

The matter will be heard in the Federal Court in Brisbane on 10 May.

ASIC’s investigation is continuing.

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