ASIC bans Queensland adviser for 4 years
The Australian Securities and Investments Commission (ASIC) has banned a Queensland-based financial adviser for four years after failing to act in the best interest of clients and providing them misappropriate advice.
ASIC has banned adviser Frederick Steven Ackerman from providing financial services and performing any function involved in the carrying on of a financial services business for four years.
Mr Ackerman was an authorised representative of Pure Strategy from 22 May 2019 to 16 September 2021. He was also the sole director of Pure Strategy from 26 May 2019.
“ASIC found that Mr Ackerman failed to act in the best interests of his clients or provide them appropriate advice. At times he did not identify his clients’ relevant objectives, financial situation or needs, identify the subject matter of the advice sought and conduct a reasonable investigation and assessment of financial products,” ASIC stated.
“Mr Ackerman also failed to base all judgements on his client’s circumstances or place his clients in a better position were they to follow his advice.”
Additionally, the regulator found that Mr Ackerman is neither competent nor a fit and proper person to provide a financial service.
In addition to the ban, ASIC has also cancelled the Australian financial services (AFS) licence of Pure Strategy, effective 16 September 2021. This was due to Pure Strategy’s failure to comply with its general obligations.
“ASIC found that Pure Strategy failed to have adequate resources to carry out a financial services business, failed to maintain competence to provide the financial services under its licence, and failed to ensure its representatives complied with financial services laws. Pure Strategy also failed to comply with its licence condition to have a ‘key person’,” ASIC said.
“Under the terms of the cancellation, Pure Strategy’s licence will remain in effect for 12 months for the purposes of maintaining its membership of the Australian Financial Complaints Authority and its obligation to hold professional indemnity insurance cover.”
Pure Strategy has held an AFS licence since 2011 (licence number 403524). An external administrator was appointed to Pure Strategy in September 2021.
Mr Ackerman’s banning has been recorded on ASIC’s publicly available Financial Advisers Register and Banned and Disqualified Persons Register.
Both Mr Ackerman and Pure Strategy have the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.