ASIC permanently bans Sydney licensee from providing financial services and cancels licence

ASIC has permanently banned financial advisor Tram Tran from providing financial services and has cancelled her Australian financial services licence (AFS licence).

Ms Tran was banned following an ASIC investigation in relation to alleged misappropriation of client self-managed superannuation funds (SMSF). Ms Tran was a financial advisor and an authorised representative under her AFS licence.

ASIC found that funds were withdrawn from Ms Tran’s client’s SMSF accounts without their authority and deposited into the trust account of Orchard Accountants Pty Ltd, for which Ms Tran was the sole director and shareholder.

ASIC also found that Ms Tran:

  • failed to co-operate and assist the Australian Financial Complaints Authority (AFCA, formerly known as the Financial Ombudsman Service) in responding to complaints made by clients and provide an explanation regarding the misappropriation of monies;
  • failed to promptly respond to ASIC’s notices to produce; and
  • provided false and misleading information to ASIC.

Following the banning order against Ms Tran, ASIC has also cancelled Ms Tran’s AFS licence.

ASIC has also been assisting the NSW police in relation to an investigation that they are conducting into Ms Tran.

Background

Ms Tran held AFS licence number 488734 since 28 July 2017. Under the Corporations Act, ASIC has the power to suspend or cancel an AFS licence, if a licensee does not comply with its general obligations under s912A.

ASIC has also disqualified Ms Tran from being an SMSF auditor after ASIC found that she was not a fit and proper person (See 19-189MR).

Ms Tran has the right to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.

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