Financial advisor banned by ASIC after dishonest conduct

An adviser who operated in Sydney for more than 25 years has been banned from providing financial services and engaging in credit activities.

The Australian Securities and Investment Commission (ASIC) found that Nigel Keith Flowers, 49, of Coolangatta, Queensland, had engaged in dishonest conduct while acting as a financial adviser.

The veteran financial adviser who specialised in providing advice to the medical professionals was the director of Flowers Financial Group Pty Ltd, now in liquidation, and Flowers Financial Management Ptd Ltd, also in liquidation. Flowers Financial Management’s financial services license was cancelled in April last year.

Flowers raised $1.475 million in funds for a proposed initial public offering by Avior Australia Ltd from long term clients of Flowers Financial Management.

Between February 11 and March 2012, ASIC found that Flowers improperly paid out at least $720,332 from the trust account that held the funds, with at least $696,138 going to parties related to Flowers.

After the initial public offering was cancelled, Avior put $30,000 back into the trust account to be returned to investors. But Flowers again improperly disbursed funds, paying out at least $27,000 to parties related to him.

ASIC found that Flowers was not of good fame and character and not a fit and proper person to engage in credit activities.

ASIC Commissioner Greg Tanzer said that financial advisers were expected to act honestly.

“Dishonest conduct by financial advisers undermines confidence and trust in the financial services industry. ASIC regards these actions very seriously and will remove those who disregard the law” said Tanzer.

Flowers has the right to appeal the decision.