ASIC bans Sydney based financial advisers for five years

ASIC has banned Gerald Cummings and Craig Allen for a period of five years. Mr Cummings was a director and authorised representative of Premier Wealth Management Financial Services Pty Ltd (Premier Wealth Management). Mr Allen is the current director, authorised representative and responsible manager of Premier Wealth Management.

The bans prevent Mr Cummings and Mr Allen 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.

ASIC found Mr Cummings failed to give Statements of Advice when there had been significant changes in clients’ circumstances and the basis for the advice. He engaged in misleading or deceptive conduct in relation to review checklists on client files, claiming to confirm that certain tasks in the advice process had occurred when they had not. Mr Cummings also failed to implement a system to refund clients that had been overcharged fees.

ASIC found Mr Allen was involved in Mr Cummings’ non-compliance with the requirement to provide Statements of Advice. Mr Allen had also audited his own files, engaged in misleading and deceptive conduct in relation to checklists on client files and had also failed to implement a system to refund any client overpayments. He failed to demonstrate that he has the skills, knowledge and expertise to perform his duties as a responsible manager and financial adviser to the standard required.

ASIC found that both Mr Cummings and Mr Allen demonstrated prolonged, wide ranging and ongoing incompetence and lacked compliance mentality. ASIC found that they are likely to contravene financial service laws in the future.

Mr Cummings and Mr Allen have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

The bannings have been recorded on the Banned and Disqualified Persons Register. ASIC’s Moneysmart website has useful information for consumers whose advisers have been banned.

Background

Mr Cummings was an authorised representative of Premier Wealth Management from 10 June 2011 to 24 November 2021. He was also a director of Premier Wealth Management until 9 April 2021.

Mr Allen was an authorised representative of Premier Wealth Management from 10 June 2011 to 24 November 2021. He was also the sole director of Premier Wealth Management from 9 April 2021.

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