The loans were used for his personal expenditure which included staving off bankruptcy, paying private school fees, gambling and general expenses, ASIC said in a public statement.

From August 2009 to July 2017, Mr Michael was an authorised representative of Marigold Falconer International Pty Ltd and Allied Financial Solutions Pty Ltd through his business RM Wealth Management Pty Ltd.

The ASIC investigation also found that Mr Michael had failed to disclose commissions on financial investments that he recommended and implemented on behalf of clients, recommended financial investments without disclosing that a conflict of interest existed, and failed to prioritise his clients’ interests ahead of his own.

ASIC also found that he had failed to act in the best interest of his clients in relation to loans procured from clients and recommending high-risk investments which were contrary to clients’ risk appetites.

“Mr Michael [also] failed to provide clients with statements of advice, product disclosure statements and fee disclosure statements and engaged in unlicensed financial advice beyond the cessation of his authorisation as a financial adviser,” ASIC said.

On 26 July 2019, ASIC found that Mr Michael had breached financial services laws and was not of good fame and character.

Mr Michael has a right to lodge an application for review with the Administrative Appeals Tribunal.

ASIC said it expects financial advisers to comply with the law and adhere to ethical standards when providing financial product advice to consumers.

“Financial advisers have an obligation to provide clients with a statement of advice where one is required, before implementing the advice on their behalf. They are required to keep proper records,” it stated.