ASIC has banned David Radovan of Western Australia from providing financial services for five years after an investigation revealed concerns with the appropriateness of his advice to retail clients.
Radovan recommended financial products to more than 30 clients while acting as an authorised representative of Infocus Securities between July 2006 and October 2008, the corporate watchdog said.
In a number of cases, ASIC said it found Radovan didn’t have a reasonable basis for the advice he gave and failed to consider the personal circumstances of his clients prior to making recommendations to invest in various financial products.
“ASIC’s investigation also found Mr Radovan engaged in misleading and deceptive conduct and failed to provide clients with documents required under the Corporations Act, such as statements of advice and product disclosure statements,” ASIC said.
“Mr Radovan also recommended that clients invest by utilising investment loans, including margin loans.
“His failure to adequately assess the clients’ circumstances and objectives when recommending the investments, in conjunction with the use of finance, resulted in most clients being overgeared and exposed to significant financial risk.”
ASIC also found it was likely Radovan would continue not to comply with financial services laws in the future.
Radovan has the right to lodge an application for a review of ASIC’s decision with the Administrative Appeals Tribunal.
ASIC commenced an investigation in July 2009 after Infocus reported Radovan’s conduct to the watchdog.
