A director of Macquarie Town Financial Services in NSW has been restrained from continuing in his role as a financial adviser while ASIC investigates alleged misuse of investors’ funds.  

ASIC obtained orders from the Supreme Court of NSW permanently restraining John Higgins from providing financial advice or products or dealing with client’s funds. Mr Higgins agreed to a court undertaking to compensate consumers who suffered a financial loss as result of him misappropriating their investment funds.

ASIC said Mr Higgins was previously a financial adviser with Garrisons. The company terminated his authority to provide financial advice after discovering he had allegedly placed clients’ money in his own business account. ASIC commenced its investigation after learning Mr Higgins had continued to provide financial advice while unlicensed.

In addition to the restraining order, the court also ordered Mr Higgins sell or refinance particular assets in order to repay consumers. It also called for an independent accountant to review his personal and business financial records and that he surrender his passport to ASIC.

The investigation continues.