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Queensland financial adviser banned for recommending options trading to 152 clients

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Hi All,

Hot off the press today (ASIC media release):


ASIC has banned Mr David Neil Wilkins, of Springwood, Queensland from providing financial services for five years.

Mr Wilkins was banned after ASIC found he had engaged in misleading conduct and provided inappropriate advice.

At the time of the misconduct, Mr Wilkins was an authorised representative of RBS Morgans Ltd, Romad Financial Services Pty Ltd and later, MDS Financial Planning Pty Ltd. During this time, he offered his ‘Options Strategy’ to at least 152 clients. The ‘Options Strategy’ involved Mr Wilkins recommending to his clients that they engage in options trading based on recommendations sent by him or his company.

An ASIC investigation found that between September 2010 and May 2012, Mr Wilkins did not comply with financial services laws as he:

• engaged in conduct regarding a financial product or a financial service that was misleading or likely to mislead by representing that options trading carried little to no risk, and

• provided inappropriate advice to clients about trading in options and failed to make appropriate inquiries about the relevant personal circumstances of those clients.

Deputy Chairman Peter Kell said, ‘Trading in options is complex, can be very risky and is not appropriate for all clients. ASIC will act to remove those advisers from the industry who fail in their obligations to provide appropriate advice.’


For full details, just go to the "Media releases" section of the ASIC's home page.

-IG
 
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Re: Queensland financial adviser banned for recommending options trading to 152 clien

Hi All,

Hot off the press today (ASIC media release):


ASIC has banned Mr David Neil Wilkins, of Springwood, Queensland from providing financial services for five years.

Mr Wilkins was banned after ASIC found he had engaged in misleading conduct and provided inappropriate advice.

At the time of the misconduct, Mr Wilkins was an authorised representative of RBS Morgans Ltd, Romad Financial Services Pty Ltd and later, MDS Financial Planning Pty Ltd. During this time, he offered his ‘Options Strategy’ to at least 152 clients. The ‘Options Strategy’ involved Mr Wilkins recommending to his clients that they engage in options trading based on recommendations sent by him or his company.

An ASIC investigation found that between September 2010 and May 2012, Mr Wilkins did not comply with financial services laws as he:

• engaged in conduct regarding a financial product or a financial service that was misleading or likely to mislead by representing that options trading carried little to no risk, and

• provided inappropriate advice to clients about trading in options and failed to make appropriate inquiries about the relevant personal circumstances of those clients.

Deputy Chairman Peter Kell said, ‘Trading in options is complex, can be very risky and is not appropriate for all clients. ASIC will act to remove those advisers from the industry who fail in their obligations to provide appropriate advice.’


For full details, just go to the "Media releases" section of the ASIC's home page.

-IG
It's just crazy for a fin planner to be messing around in options which such a large amount of clients. I hope the licensee has good PI insurance. They are going to get hammered with claims.
 
Joined
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Re: Queensland financial adviser banned for recommending options trading to 152 clien

It's just crazy for a fin planner to be messing around in options which such a large amount of clients. I hope the licensee has good PI insurance. They are going to get hammered with claims.
Yes, Hodgie, it seems to be a classic case of the old “man-with-a-hammer syndrome”.

And while it is fortunate that the financial planner concerned would have professional indemnity insurance, I suspect though that only a small percentage of the clients will know how to successfully access it.

-IG
 

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