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A former adviser will now be permanently banned from financial services and credit activities following his conviction of theft of clients’ SMSF funds.
ASIC slaps permanent ban on former adviser
08 April 2020
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6 minute read
Former Adelaide financial adviser James David Gibbs has now been permanently banned from any involvement in financial services and credit activities.
The permanent ban follows Mr Gibbs’ sentence to 10 years in jail for theft and dishonesty when he was the director of James Gibbs Investments Pty Ltd.
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Mr Gibbs, who was trusted by his clients to operate SMSF accounts and open new accounts, ultimately went on to steal approximately $4.88 million in client funds.
He went on to use his clients’ funds for his own benefit, including propping up his business, paying his own credit card debts, paying himself and staff a salary, and for gambling.
ASIC said this was the first ban utilising the recent extensions to the regulator’s powers, extending the ban to any involvement in financial services or credit activities.
The corporate regulator had previously only had the power to ban people from providing financial services or engaging in credit activity.
“Mr Gibbs has been banned because he committed serious dishonesty offences in relation to dealing with property and documents,” ASIC said in a statement.
Mr Gibbs will have the right to appeal the banning with the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.
He was automatically disqualified from managing a corporation for five years following his conviction.
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