By JOHN VAN KLAVEREN
INVESTORS have lost tens of thousands of dollars after dealing with a Torquay financial services trader now banned for seven years.
Australian Securities and Investment Commission (ACIC) deputy chairman Peter Kell said Scott Logan breached numerous financial services laws as a director and sole employee of Shore Capital Pty Ltd, trading as Coast Capital.
“At least three clients lost a combined total of over $38,000 through the unauthorised trading,” Mr Kell said.
“The investing public needs to be able to trust those who provide financial services. ASIC will act to ensure those who behave without regard to their obligations to their clients will be removed from the financial services industry.”
Mr Kell said an ASIC investigation found that Shore Capital traded without authorisation in contracts for difference on behalf of retail clients between April 2011 and June 2013.
“Shore Capital initially traded on behalf of retail clients without holding an Australian financial services licence. It later traded on behalf of retail clients when it held a licence for the provision of services to wholesale customers only.”
Mr Kell said Mr Logan made numerous false or misleading representations to clients about Shore Capital’s authorisation to provide financial services and its fees.
Shore Capital’s licence was cancelled on 16 October after it ceased operating in financial services.
Mr Kell said Mr Logan and Shore Capital could appeal to ane Administrative Appeals Tribunal.
Mr Logan was formerly an authorised representative of Romad Financial Services Pty Ltd from 25 June 2011 to 21 October 2011.
Mr Kell said ASIC cancelled Romad’s AFS licence on 21 October 2011.
Recent reviews on businesslistings.net.au slammed Mr Logan.
“Lest not forget Scotty boy. Every dog has his day and yours is yet to come,” one reviewer posted
Another reviewer said he had lost “more than you want to know”.
The Independent was unable to contact Mr Logan for comment.
