ASIC has banned a planner for five years for providing unlicensed advice when receiving sales commissions totalling over $310,000.
Power Financial Planning (Power FP) director Stephen McArdle had negotiated an agreement to distribute the firm's loan products through Kebbel Securities, a subsidiary of Kebbel Funds Management (Kebbel).
Kebbel was the main fundraising channel for the failed Westpoint Group, which collapsed in late 2005 owing $300 million to 4000 investors.
The loan products called the power equity loan were promoted across Australia.
Under the agreement with Kebbel, Power FP would earn commissions on investments made by clients in the different products promoted by Kebbel.
These products included Westpoint investments in Emu Brewery Mezzanine and Mount Street Promissory Notes.
People invested over $10 million in the power loan products. Power FP received a 3 per cent commission totalling over $310,000.
ASIC found that McArdle and Power FP were unlicensed when developing, promoting and distributing the power equity loans.
Ten licensed financial advisers and two unlicensed advisers who advised on Westpoint products have now been banned.
