Adviser banned for inappropriate advice

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ASIC has permanently banned a former Queensland financial adviser after an investigation found he provided inappropriate and unreasonable advice.

On 17 July 2013 Bradley John Lofts, of Brisbane, Queensland, was permanently banned from providing financial services.

Lofts has been a director of McLofts Pty Ltd which traded as Sterling Financial Strategies. Sterling Financial Strategies operated a financial services business from offices in Townsville, Ayr and Brisbane.

Lofts was an authorised representative of Lionsgate Financial Group Pty Ltd between 15 October 2010 and 19 January 2012. Between 13 June 2012 and 22 June 2012 Lofts was an authorised representative of Synchronised Business Services Pty Ltd.

ASIC’s investigation found that between October 2010 and August 2012, Lofts provided inappropriate and unreasonable advice to 50 clients without determining the clients' personal circumstances.

ASIC also found that between 25 January 2012 and 7 June 2012 Lofts, on 33 separate occasions, sold ASX-listed shares on behalf of seven clients when he was not licensed or authorised to do so.

The banning follows the permanent banning of another adviser, Pavan Vyas, who also previously worked for Lionsgate Financial Group.

Lofts has the right to lodge an application with the Administrative Appeals Tribunal for a review of ASIC’s decision.

  • James Smith on 21/08/2013 10:14:11 AM

    Agree guys. A clear united message is required for the new government.
    1. Stop the misleading super ads where performance is compared on faulty grounds.
    2. Stop Intra Fund Advice. There is absolutely no basis that any institution can offer this based on their track record. All consumers need protection not just those that use an adviser.
    3. Support small business and personalised advice and service. This is a growth industry that offers job creation. The big institutions are dumming down their 'service' and sending jobs overseas. They have monopolised the legislation debate to further their vested interests ie inc FUM and stuck their fingers up at the adviser profession.
    4. We already are an advice profession with adequate professional standards. No legislation will prevent bad apples. Better to throw the full weight of the existing law at the bad apples rather than penalise 99% of the industry with additional legislation.
    5. FOFA has been poorly considered and offers little value ( what is the point of disclosing service fees but not commissions ? Why legislate to disclose part of the fees ( the adviser component ) rather than the total fees ( which is most relevant to the client ) ? Industry funds,SMSF and retail funds mislead by quoting part of the fees making fee comparisons impossible and a faulty basis for clients to make decisions. If their is a fee disclosure statement it should include:
    a. All admin fees ( not a notional figure with the balance deducted from fund earnings ).
    b. All fund manager fees.
    c.Fund audit and tax return fees.
    d. Adviser Fees. Including adviser salaries that are deducted from fund earnings.
    Until we can achieve that stop the nonsense and leave things as they are.

  • Bruno Festa on 21/08/2013 9:36:13 AM

    Well all is not lost. I see Joe Hockey flagging these issues last weekend, and agrees with your comments.
    Sept 7 just around the corner now.

  • Michael Langtry on 16/08/2013 3:44:40 PM

    I too am overwhelmed - during my 32 years in this profession my purpose has been to provide timely and comprehensible advice and implementation to clients, in their best interests.
    The legislation misses the point and gets in the way of the best interests of the client, to the extent that my service, advice and processes have slowed to a snail's pace. Also, it apears to have done nothing to reduce the abuses of a small number of our profession. These abuses are not unique to our profession, abuse occurs in all professions through neglect, ignorance, inexperience and criminal activities. Government intervention could be useful if properly targeted and resourced, but it's not, and the micromanagement approach has forced changes to product, advice and service and increased the costs to us and the clients, most of which are not in the best interests of clients.
    I feel like every day I am swimming in mud - it is exhausting, I don't get very far, and I feel dirty at the end of the day.
    I hope that someone in power gets the point and lets the system revert to a more sensible regime.
    And then maybe the regulators will be able to free up the resources to pro-actively prevent the abuses before they do any damage to clients.

  • Emma on 16/08/2013 2:44:51 PM

    Alistair, I couldn't agree more. FOFA has just added extra burden for NO benefit to our clients. The only impact I see for clients is an unavoidable increase in cost for our services! This government has done immense damage to our industry and our country. Get rid of them.

  • rohan on 16/08/2013 1:57:09 PM

    Alistair - well spoken , maybe mate u should be running for a seat on the 7th

  • Alistair on 16/08/2013 1:22:17 PM

    For all these types of folks who seek to provide such advice with disregard for due process. Well done. But for the majority of advisers who are currently grappling with FOFA and the multitude of issues, is it just me who feels over whelmed at present ? Where is the logic in the process for the majority of us. Instead we are the pawns in the equation as our lives are turned upside down, our businesses compromised along with its values and for what. Nothing but to pay homage to the union driven funds thanks to this incompetent government in Labor. Bring on September 7, lets get rid of this pathetic government you guys in FP land. Bad apples are in every bunch. Yes prosecute the bad apples but the powers that be have forgotten about also applying the full force of Corporations Law to the promoters of failed schemes that cost investors billions such as Timbercorp, Banksia, Great Southern, Prime Property, LM Mortgage Management etc and proper oversight of the regulator themselves. Arrogance Incompetence and ineptitude combine under this government to attack the wrong people. The majority of hard working and dedicated to our clients folk like you and I. A vote for the current mob is a disaster for you and I and that other corporation which needs better direction. Australia Inc

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