This article is from the Australian Property Journal archive
A BRISBANE father and son who provided financial advice in the failed Westpoint Group have been banned by the Australian Securities and Investments Commission.
ASIC has banned Matthew James Brannelly and his father, Paul Anthony Brannelly from providing financial services – Matthew for six years and Paul for four years.
The financial planning company, Brannelly Financial Pty Ltd, of which the Brannelly’s were the only directors, has also been banned from providing any financial services for six years.
Between October 2003 and November 2005, the Brannellys advised clients to invest in promissory notes offered by a number of companies associated with the Westpoint Group which collapsed in early 2006.
An ASIC investigation found that Matthew did not undertake sufficient investigations nor consider the risks associated with these products, prior to making recommendations to his clients to invest in Westpoint.
ASIC’s investigation determined Matthew represented to clients that Westpoint promissory notes were a good investment opportunity without performing a full analysis and undertaking sufficient investigation. In doing so, he had provided financial advice without meeting the legislative requirements.
ASIC also found he provided ambiguous information regarding financial products.
Meanwhile an ASIC investigation found Paul provided letters of recommendation to clients which lead the clients to believe that he had taken into account their personal circumstances when, in fact, he had not done so.
In light of the defective advice provided by the Brannellys, ASIC’s investigation concluded that Brannelly Financial Pty Ltd had facilitated the provision of this advice through the actions of its directors.
Matthew Brannelly and Brannelly Financial Pty Ltd were authorised representatives of Deakin Financial Services Pty Ltd from 1 October 2003 until 31 October 2005. Paul Brannelly was an authorised representative of Deakin Financial Services Pty Ltd from 6 October 2003 until 31 October 2005. All three entities were authorised representatives of Platinum Group Financial Services Pty Ltd (later Sentry Financial Services Pty Ltd) from 1 November 2005 and still retained that status at the time they ceased to provide the relevant advice at the end of December 2005.
So far 22 licensed advisers, four unlicensed advisers and one corporate entity have now been banned by ASIC in relation to advice around Westpoint products.
Australian Property Journal