ASIC cancels license of Professional Wealth Management Services (PWMS) & bans financial adviser

ASIC has permanently banned Donald James Cuthbertson from providing any financial services, performing any function involved in the carrying on of a financial services business, and controlling an entity that carries on a financial services business.

ASIC has also canceled the Australian financial services (AFS) license of Mr. Cuthbertsons company, Professional Wealth Management Services Pty Ltd (PWMS), with a condition that the external dispute resolution and arrangements for compensating clients remain in place for 12 months. PWMS is an Australian financial services business based in Sydney which has held AFS license no. 468125 since 11 March 2015.

Mr. Cuthbertson is a director of PWMS, Professional Wealth Management Pty Ltd (PWM), and Professional Wealth Investments Pty Ltd.

ASIC‘s concerns arose from Mr. Cuthbertson’s conduct regarding:

• offers of redeemable preference shares in PWMS;

• offers of unlisted shares in PWM;

• the promotion of a trading course involving contracts-for-difference; and

• unlicensed dealing in derivatives.

ASIC found Mr. Cuthbertson is not a fit and proper person to provide financial services and that he:

• misappropriated investor funds;

• made false or misleading representations in connection with the redeemable preference shares he offered in PWMS and unlisted shares in PWM;

• made false or misleading representations regarding the level of risk involved in trading contracts-for-difference; and

• was involved in dealing with derivatives without appropriate authorization.

PWMS's AFS license was canceled based on the findings made regarding Mr. Cuthbertson, that PWMS:

• failed to do all things necessary to ensure that its financial services were provided efficiently, honestly, and fairly;

• failed to ensure it had adequate arrangements in place for the management of conflicts of interest; and

• failed to comply with the license condition requiring PWMS to maintain total assets exceeding total liabilities as shown in the licensees most recent balance sheet lodged with ASIC.

Mr. Cuthbertson and PWMS have the right to appeal to the Administrative Appeals Tribunal for a review of ASICs decision.

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