In further fall-out from the Shield Master Trust the Australian Securities and Investments Commission has banned two former MWL Financial Services financial advisers for seven and six years respectively.
The regulator said it had banned Rocco D’Amelio for seven years from 18 July and Robert Cross for six years from the same date from providing financial services, controlling an entity that carries on a financial services business, or performing any function involved on carrying on a financial services business.
ASIC found that each of the advisers gave inappropriate advice to certain clients which was not in their best interests, as they recommended clients invest most of their superannuation into the High Growth class or the Growth class of the Shield Master Fund which were high risk investments. Shield also had a limited trading history.
ASIC also found that the advisers’ statements of advice to certain clients contained false and misleading statements, implying they would enjoy better returns by investing their superannuation into Shield, including representations that Shield had a higher performing track record against other super funds when Shield had only been in existence for a short period.
ASIC said it has reason to believe that each of the advisers is not a fit and proper person, is not adequately trained or competent and is likely to contravene a financial services law.