ASIC has banned former Commonwealth Financial Planning Limited authorised representative Don Nguyen from providing financial services for seven years.
The ban is a result of an investigation conducted by the regulator that found Nguyen had breached financial services laws because he failed to have a reasonable basis for his advice, failed to provide statements of advice, failed to provide product disclosure statements, made false or misleading statements that were material, failed to provide additional information in relation to the switch of clients from one product to another, and making false, misleading, or deceptive statements and forecasts about the financial products recommended to clients.
ASIC also found Nguyen failed to demonstrate a willingness to ensure the highest standard of industry compliance and lacked the ability and knowledge to perform his duties within the Corporations Act rules governing providers of financial services.
The investigation discovered Nguyen’s illegal actions occurred between 2006 and 2008, while he was an authorised representative of CFPL working from its Chatswood office.
Nguyen can seek to appeal the regulator’s decision through the Administrative Appeals Tribunal.
ASIC is continuing to assess CFPL’s compliance procedures for its authorised representatives.
Concerns over the actions of Nguyen were first raised with ASIC in late 2008.
As a consequence of the ASIC investigation into Nguyen’s actions CFPL agreed to compensate his former clients for their losses in November last year.
Furthermore, a class action was filed against CFPL by Maurice Blackburn Lawyers last month to ensure appropriate levels of compensation are offered to the former clients of Nguyen.
