Regulator Down Under Exiles Former Morgan Stanley WM Advisor

Josh O'Neill

13 March 2017

Australia's financial regulator has permanently banned a former found that Andrew Panayiotides failed to act in the best interests of his clients because, among other wrongdoings, he gave them unsuitable advice relating to exchange-traded options.

Panayiotides knew, or ought to have known, that there was a conflict of interests due to the financial benefit he received in the form of brokerage fees from the ETO transactions he advised his clients to enter into, ASIC said in a statement.

The financial watchdog also discovered that he improperly made payments into his clients' bank accounts using his own funds; issued a false invoice; gave “unethical” advice to a client regarding a superannuation fund withdrawal; and entered into a personal loan arrangement with a client.

“In considering Mr Panayiotides' conduct, which was not of an isolated nature, was not inadvertent and occurred over a long period of time in which clients incurred significant losses, ASIC had reason to believe that Mr Panayiotides was likely to contravene a financial services law in the future and was not of good fame or character,” ASIC said.

ASIC commissioner Cathie Armour commented: “Financial advisors are expected to act in the best interests of clients. ASIC will ensure appropriate enforcement action is taken against advisors who fail in this duty.”