The Australian Securities and Investments Commission (ASIC) announced it had banned James Cribb from Mode Financial from providing financial services for four years on Thursday. Mode Financial has also had its Australian Financial Services Licence (AFSL) suspended for 10 weeks.
The action was handed down after ASIC found Mr Cribb had provided advice to SMSF clients that served to benefit his own interests, by way of an SMSF administration business of which he was the sole director and shareholder.
ASIC said Mr Cribb failed to act in the best interests of his clients, failed to investigate his clients’ specific circumstances and “adequately investigate” the alternative products and strategies suitable for his clients.
“Mode did not take reasonable steps to ensure that its representatives complied with financial services laws,” ASIC said, explaining that Mode’s AFSL will be suspended for 10 weeks, starting from 19 July 2018, or until its replacement key person and manager is approved by ASIC.
Mr Cribb and Mode have the right to appeal, but Mr Cribb’s banning will be recorded on ASIC’s Financial Advisers Register.