Compliance
Australian Regulator Bans Accountant, Financial Firm Director Over Misleading, False Statements

This publication brings more news of enforcement actions taken by Australia's financial regulator.
Australia’s financial regulator has banned a certified practising
accountant and former director of GTL Trade Up Pty Ltd, a firm
dealing and advising on products such as forex contracts, from
providing any financial services until 21
May 2018.
The ban was imposed on Andrew Jeffers by the Australian
Securities and Investments Commission because it found that GTL
Trade Up Pty Ltd issued three product disclosure statements
between March 2012 and March 2013 that included statements which
were materially false or misleading.
GTL was issued with an Australian financial services licence in
January 2011 to carry out financial services business to
deal in and advise on a range of financial products, including
derivatives and foreign exchange contracts. The main liquidity
provider of GTL was Dubai-based GTL Trading DMCC. Mahmood Riaz
was the director of DMCC and, at various times, GTL. Riaz was not
an officeholder of GTL at the time it was issued an AFSL.
While Jeffers was a director, GTL issued the three disclosure
statements which included statements that ASIC found to be false
or materially misleading in that they did not represent the true
trading position undertaken by GTL, the regulator said in a
statement.
Liquidators were appointed to GTL on 26 September 2013 after DMCC
failed to make funds available to GTL to meet client withdrawals.
At the time GTL was owed about $4.35 million by DMCC. GTL
owed about $4.4 million to its retail clients.
Jeffers has made an application to appeal to the Administrative
Appeals Tribunal for a review of ASIC's decision.