ASIC has now banned former Westpoint adviser Ian Bristow from providing financial services for six years, while his son Mathew Bristow has been banned for the next three.
The ASIC investigation found Ian Bristow dishonestly facilitated the transfer of three clients' investment funds into Westpoint mezzanine products, prior to providing financial advice and without the clients' authority to do so, in November 2005.
The investigation also found Ian Bristow ran five unregistered management investment schemes (MIS) through his company, Earning Pty Ltd, between May 2006 and March 2008.
On March 28, 2008 Ian Bristow was disqualified by the Federal Court from managing corporations for three years, as a result of his role in promoting and managing unregistered MIS's.
His son Mathew was found to have operated the unregistered MIS's and breached undertakings to ASIC.
Seventeen licensed advisers, including Ian Bristow, and three unlicensed advisers who advised on Westpoint products have now been banned.
Neil Austin Burnard was recently fined $50,000 and placed on a 12-month good behaviour bond following his involvement with Westpoint, and ASIC has since requested an appeal against the leniency of the sentence.
Despite the regulator's clamp down, Westpoint Investors Group president Graham MacAulay said the Westpoint fall out is only the tip of the iceberg.
"The systemic failure of ASIC has caused tens of thousands of Australian investors their hard-earned savings in many companies," he said.
