ASIC bans two advisers
The corporate regulator has announced two adviser bans including a permanent ban for an adviser who dishonestly obtained funds from client super accounts.
The corporate regulator announced on Monday it has permanently banned former NSW based adviser after he was convicted of fraud, while also prohibiting a former Perth financial adviser from having any involvement in financial services and credit activities.
The Australian Securities and Investments Commission (ASIC) said it has permanently banned Sean John Sweeney of Lindfield, New South Wales, after he was convicted of fraud offences on 4 November 2022.
Mr Sweeney is banned from providing any financial services, performing any function involved in the carrying on of a financial services business, and controlling an entity that carries on a financial services business, the corporate regulator said.
Mr Sweeney was authorised to provide advice between 17 November 2014 to 30 July 2018, according to ASIC.
He was the sole director of Sweeney Insurance Services which was authorised from 17 November 2014 to 8 October 2018. He was subsequently the sole director of Swinsure, which was authorised from 1 July 2020 to 30 July 2020. Mr Sweeney was convicted of fraud on 4 November 2022 in the Local Court of NSW at Hornsby.
“Financial advisers must act with honesty and integrity in their dealings with clients. ASIC may ban a financial adviser if it has reason to believe that they are not a fit and proper person to provide financial services or that they are likely to contravene a financial services law,” ASIC said.
On 21 December 2022, Mr Sweeney filed an application at the Administrative Appeals Tribunal (AAT) seeking a review of ASIC’s decision. This decision is currently pending.
In a separate press release, ASIC said it has also permanently banned former Perth financial adviser Rahul Goel from having any involvement in financial services and credit activities.
In December 2022, Mr Goel was sentenced to three years’ imprisonment for fraud offences to be released after serving 18 months, upon entering a $5000 recognisance to be of good behaviour for two years. He had previously pleaded guilty to dishonestly obtaining over $35,000 from his clients’ superannuation accounts.
An ASIC investigation identified that after obtaining First Nations consumers’ superannuation details, Mr Goel submitted falsified benefit access applications or hardship applications to the superannuation funds. After funds were successfully released, Mr Goel retained up to 100 per cent of the payout in fees before forwarding the balance to the consumers.
Following his convictions, ASIC pursued banning orders to remove Mr Goel permanently from the financial advice and credit industries.
Mr Goel has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
