The Australian Securities and Investments Commission (ASIC) announced that a former Gold Coast financial adviser has been sentenced to 12 months jail for providing advice without a reasonable basis and for making a number of false or misleading statements.

Appearing before Southport District Court on 13 March 2015, Ian John Weaver, 70, was convicted and sentenced to 12 months jail on each of the four criminal counts brought by ASIC, conditionally released upon entering into a two year good behaviour bond.

In handing down his decision, his Honour Judge Wall QC commented on the negative impact Mr Weaver’s conduct had on his clients, remarking that he had acted more in his own interests than those of his clients.

His Honour also commented that while Mr Weaver’s convictions should largely serve as a general deterrent against section 1041E offences (the making of false or misleading statements), that it should also serve as a general deterrent against the new civil penalty provisions (section 961B requirements – to act in the best interests of the client), which now replace section 945A of the Act.

In May 2014 Mr Weaver pleaded guilty to three counts of failing to have a reasonable basis for the advice he gave and one count of making a false or misleading statement. He was charged in March 2012.

Mr Weaver’s conduct occurred when he was an authorised representative of Enhance Capital Pty Ltd and The Salisbury Group Pty Ltd, between January 2003 and June 2010.