ASIC pursues criminal charges against former AMP AR

A former AMP authorised representative who has been appealing his permanent banning by the Australian Securities and Investment Commission (ASIC) is now facing criminal charges initiated by the regulator.

The former Perth-based financial adviser, David Michael Fong and his company Fong Financial Planners Pty Ltd have each been charged with engaging in dishonest conduct while carrying on a financial services business.

ASIC said it was alleging that in 2014, while an authorised representative of AMP, Fong via Fong Financial Planners acted dishonestly when he:

• completed and submitted false information in clients’ insurance applications;
• failed to adequately disclose fees to clients;
• acted without client instructions; and
• failed to adequately disclose the effect of advice, for instance clients becoming uninsured after closing their superannuation accounts.

Fong appeared before the Perth Magistrates Court on 19 November 2021 and was granted conditional bail.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions. It has been listed for further mention on 14 January 2022.

ASIC permanently banned Fong from providing financial services or engaging in credit activities in 2017 and Fong appealed ASIC’s decision to the Administrative Appeals Tribunal (AAT).

The appeal process is stayed pending the outcome of the criminal proceedings.