ASIC Cancels Octillion Partners' Financial Services Licence Over Misconduct

ASIC cancels Octillion Partners' AFS licence due to concerns over supervision of financial adviser Shane Allan Rose, who engaged in dishonest conduct. Rose was permanently banned from providing financial services on March 20, 2024.

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Bijay Laxmi
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ASIC Cancels Octillion Partners' Financial Services Licence Over Misconduct

ASIC Cancels Octillion Partners' Financial Services Licence Over Misconduct

The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licence of Octillion Partners Pty Ltd, effective May 10, 2024. The cancellation follows ASIC's concerns regarding Octillion's supervision of its authorised representative financial adviser, Shane Allan Rose, who engaged in dishonest conduct by using client invested funds for purposes other than which they were given.

Why this matters: This cancellation highlights the importance of regulatory oversight in the financial services industry, ensuring that companies and individuals operate with integrity and transparency. It also serves as a warning to financial services providers of the consequences of non-compliance with financial services laws, which can lead to financial losses for clients and damage to the industry's reputation.

Octillion Partners Pty Ltd, based in Helensvale, Queensland, held AFS licence no. 000289621 between July 15, 2005, and May 10, 2024. The company, formerly known as ACN 105 085 612 Pty Ltd, Unison Wealth Management Pty Ltd, and Eden Wealth Management Pty Ltd, will continue to provide financial services to current clients under the terms of the licence cancellation until August 16, 2024.

On March 20, 2024, ASIC permanently banned Shane Allan Rose from providing any financial services, performing any function involved in the carrying on of a financial services business, and from controlling an entity that carries on a financial services business. Rose's misconduct and Octillion's failure to adequately supervise him led to the cancellation of the company's AFS licence.

ASIC's decision to cancel Octillion's licence highlights the importance of financial advisers acting with honesty and integrity in their dealings with clients. The regulator may ban a financial adviser if it has reason to believe that they are not a fit and proper person to provide financial services or that they are likely to contravene a financial services law.

In a separate case, the Administrative Appeals Tribunal (AAT) recently upheld ASIC's decision to permanently ban Sean John Sweeney from providing any financial services due to his conviction of fraud offences in the Local Court of NSW at Hornsby on November 4, 2022. The AAT found that a permanent ban was appropriate as the fraud was "blatant and relatively serious" and occurred in the course of Sweeney's work in the financial services industry.

The cancellation of Octillion Partners' AFS licence serves as a stark reminder of the consequences financial services providers face when failing to comply with financial services laws and adequately supervise their representatives. Octillion has the right to apply to the Administrative Appeals Tribunal for a review of ASIC's decision.

Key Takeaways

  • ASIC cancels Octillion Partners' AFS licence due to dishonest conduct.
  • Octillion failed to supervise Shane Allan Rose, who misused client funds.
  • Rose was permanently banned from providing financial services.
  • ASIC emphasizes importance of regulatory oversight and integrity.
  • Octillion can apply to AAT for review of ASIC's decision.