The regulator has permanently banned a former Morgan Stanley financial adviser after it was determined he failed to act in the best interests of clients.
In a statement released last week, ASIC announced the permanent banning of former financial adviser Andrew Peter Panayiotides for failing to act in the best interests of clients and for providing inappropriate advice to clients of Morgan Stanley Wealth Management in relation to exchange traded options (ETOs).
“Mr Panayiotides' conduct resulted in each of the client's superannuation accounts being significantly exposed to short cash covered ETO positions that were contrary to the risk profile declarations provided by the clients,” ASIC said.
“ASIC also found that Mr Panayiotides knew, or ought reasonably to have known, that there was a conflict of interest between the financial benefit Mr Panayiotides received, in the form of brokerage, from the numerous ETO transactions he advised clients to enter into and his clients' best interests, and that he failed to give priority to his clients' interests,” the statement said.
ASIC also found that Mr Panayiotides improperly made payments into clients' bank accounts using his own funds, issued a false invoice, provided unethical advice to a client in relation to a superannuation fund withdrawal and entered into a personal loan arrangement with a client in return for offering reduced brokerage while at another firm.
“In considering Mr Panayiotides' conduct, which was not of an isolated nature, was not inadvertent and occurred over a long period of time in which clients incurred significant losses, ASIC had reason to believe that Mr Panayiotides was likely to contravene a financial services law in the future and was not of good fame or character,” ASIC said.
ASIC commissioner Cathie Armour said, “Financial advisers are expected to act in the best interests of clients. ASIC will ensure appropriate enforcement action is taken against advisers who fail in this duty.”
Mr Panayiotides has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.