The corporate regulator has banned Stuart Arnold-Levy from providing financial services for four years and David Heycock for six years after an investigation found that they had breached the Corporations Act.
Heycock was the director of Corporate Superannuation (previously Australian Superannuation and Superannuation in Australia Today) which traded under the business name MySuperMan. Arnold-Level was an employee of Corporate Superannuation before becoming the director.
The Australian Securities and Investments Commission’s (ASIC’s) investigation focused on the period between 2013 and 2015 and identified concerns in relation to the two Victorian men’s activities including:
- Poor and unlicensed advice provided by them to certain clients;
- Money loaned to clients of MySuperMan by entities related Heycock and money loaned by clients’ self-managed super funds to the MySuperMan business; and
- Information and advice provided to clients and former clients in relation to a residential property development in Footscray, Victoria.
ASIC found Heycock breached the Corporations Act by operating a financial services business and providing financial advice without holding an Australian Financial Services Licence (AFSL) and without being authorised by an AFSL holder to do so, and providing financial advice that was not in the clients’ best interests or appropriate for their situation, failing to provide statements of advice, and failing to disclose potentially conflicted remuneration.
Arnold-Levy was found to have breached the Corporations Act by being aware of and involved in Heycock’s unlicensed conduct, and providing financial advice that was not in clients’ best interests and not appropriate for their circumstances.
ASIC’s investigation was part of its Wealth Management Project after it received a breach notification from Dover Financial Advisers. Until suspended on 28 March 2014, Heycock and Arnold-Levy were both authorised representatives of Charter Financial Limited, a subsidiary of AMP Group. Superannuation in Australia Today was until 28 March a corporate authorised representative of Charter Financial Limited.
The Wealth Management Project aims to lift standards by major financial advice providers and has banned 36 advisers in addition to Arnold-Levy and Heycock.