Monday 10 July 2006 06 LAWFUEL – Press Release Service – The Australian Securities and Investments Commission (ASIC) has banned Sydney financial adviser, Mr Graham Ronald Flegg, from providing financial services for three years. Mr Flegg, who practises as an accountant in Campbelltown as Flegg & Co, was an authorised representative of former Australian Financial Services licensee, Elm Financial Services Pty Limited, from November 2001 until November 2004. ASIC banned Mr Flegg after an investigation into his conduct found he had arranged for a retiree couple to invest all of their $1,000,000 superannuation in a risky unsecured product known as Elm Nominees notes in February 2004. At the time of the investment, the product was offered by ELM Nominee Services Pty Limited, a company related to the licensee. Elm Nominee Services Pty Limited defaulted on its obligation to repay the couple. ASIC found Mr Flegg breached the Corporations Act in failing to make independent inquiries into the nature of the investment and subsequently ensure that his advice was appropriate to the clients’ needs. ASIC’s investigation also revealed Mr Flegg recommended that the same couple invest $40,000 in another investment in November 2003. On this occasion, he failed to provide a written Statement of Advice as required under the law. ‘Representatives of financial services licensees have a duty to provide advice that meets their client’s specific needs and takes into consideration their individual circumstances,’ ASIC’s Deputy Executive Director of Enforcement, Mr Allen Turton, said. Mr Flegg has a right to apply to the Administrative Appeals Tribunal for review of ASIC’s banning order. For further information contact: Allen Turton Deputy Executive Director, Enforcement Telephone: 02 9911 2338 Mobile: 0411 549 236 Emma Forehan ASIC Media Unit Telephone: 03 9280 3354 Mobile: 0409 702 310
Monday 10 July 2006 06 LAWFUEL – Press Release Service – The Austral…
