Adviser banned for dishonest conduct

Adviser banned dishonest conduct

ASIC has banned a former Sydney financial adviser , who was unable to be present at trail, for dishonest conduct involving client funds

A former Sydney financial adviser has been permanently banned from providing financial services in relation to 20 dishonest conduct offences involving transfers from bank accounts holding client funds.

The Australian Securities and Investments Commission (ASIC) stated it banned Daniel Stuart McSweeny after a two-day fitness hearing in the New South Wales District Court in February 2020 found him unfit to stand trial and unlikely to become fit in the next 12 months.

In making this decision, Judge Flannery found there was enough evidence to support the charges brought by ASIC, in the absence of evidence from the defendant, and also ordered McSweeny remain in the care of his treating doctors and follow their directions regarding ongoing treatment for a period of three years.

The corporate regulator determined a permanent ban from the provision of financial services was appropriate given the court’s findings and his ban would be recorded on its Banned and Disqualified Persons register.

In bringing the case to court, an ASIC investigation led to an allegation McSweeny had dishonestly transferred or directed others to transfer funds from bank accounts holding client funds and that he directed an employee to construct a backdated statement of advice in response to an investigation being conducted following a complaint.

As a result of this investigation, he was charged on 18 December 2018 with 20 dishonest conduct offences and one offence of falsifying books as a company director.

At the time of this behaviour, he was an authorised representative of Australian Financial Services Group Ltd (in liquidation) between 12 April 2006 and 19 December 2012 and was also a director of FF&I Holdings Pty Ltd (in liquidation) during the period it was an authorised representative of Australian Financial Services Group Ltd between 11 May 2007 and 1 May 2013.

He had also been previously disqualified, in May 2019, from managing companies for the maximum period of five years following his involvement in 14 failed companies that were used to operate a financial services business.

The companies were placed into liquidation between 21 August 2014 and 8 September 2015 with debts owed to creditors totalling about $9.8 million.

McSweeny has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

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