A former NAB financial adviser has been banned from the industry for life after allegedly using more than $1.95 million of client money to cover personal and business expenses. Grant Taylor from Montmorency in Melbourne’s north-east was on Wednesday handed a life time ban on providing financial services by the Australian Securities and Investments Commision (ASIC) after an investigation found he "engaged in dishonest and deceptive conduct".
ASIC said Mr Taylor had withdrawn at least $1.95 million from private client funds and then used the money for both personal and business expenses between August 2007 and September 2016.
“ASIC also found that Mr Taylor was not of good fame or character,” the corporate regulator said in a statement.
An ASIC spokesman also left open the possibility that Mr Taylor could face criminal action.
“We can’t go into any details, but just because he hasn’t been charged doesn’t mean he won't be ... when we ban someone that doesn’t mean that is the be all and end all," he said.
In a statement NAB confirmed that Mr Taylor's actions were still under investigation by police. Victoria Police declined to comment.
Mr Taylor's name will appear ASIC's register of banned and disqualified financial planners.
From December 2003 to June 2013, Mr Taylor was a personal representative of Garvan Financial Planning - a wholly owned NAB subsidiary - and gave financial advice on superannuation, managed funds and securities.
ASIC found he had continued to tell private clients he was authorised to provide advice and financial services on behalf of the company after that authorisation was no longer in place.
Mr Taylor was also the principal of his own company, TFG Advice Solutions, which was a corporate representative for Garvan.
It is understood that the clients affected by Mr Taylor's conduct were private clients who had not signed up for service with Garvan.
NAB said in a statement that it had reported Mr Taylor to ASIC and Victoria Police in April 2016.
“NAB welcomes ASIC’s banning of former Garvan Financial Planning Adviser, Grant Taylor,” said a NAB spokeswoman.
“Garvan wrote to all clients of Mr Taylor’s financial planning practice alerting them to its concerns and carried out its own investigation. As a result of that investigation, Garvan has paid compensation to 12 clients.”
In explaining the ban, ASIC said it was concerned that Mr Taylor became bankrupt in March 2017.
Trustee of Mr Taylor’s bankrupt estate, Aaron Lucan said that his investigation remains open.
“Mr Taylor remains bankrupt and my investigations into his conduct are ongoing. A report will be provided to creditors when my investigations are complete,” Mr Lucan said.
Mr Taylor's six-bedroom property in Eltham was sold in November for $1.65 million.
NAB is set to face the banking royal commission later this week. It will join ANZ and Millennium 3 Financial Services as the case studies for the commission’s review of improper conduct by financial advisers.
The second round of hearings will focus on oversight of the industry and will include evidence from ASIC, Financial Planning Association of Australia, Association of Financial Advisers and littl- known independent advisory network Dover Group.
ASIC also banned a second financial advisor on Wednesday. Gerald Grubwinkler who practised in Queensland has been banned from providing financial services for four years.
Mr Grubwinkler worked for Suncorp Financial Services, Matrix Planning Solutions Limited and Clearview Financial Advice.
ASIC found that he fail in several of his duties including identifying the scope of advice sought by his clients, identifying alternative strategies and products and failing to obtain information on clients income and living expenses.This article was first published by http://www.canberratimes.com.au/Author: Matilda Boseley With Sarah Danckert