The Australian Securities and Investments Commission (ASIC) has made orders permanently banning Sydney-based financial adviser Peter Surtenich from providing any financial services.

He is also banned from performing any function involved in the carrying on of a financial services business (including as an officer, manager, employee, contractor or in some other capacity), and controlling, whether alone or in concert with one or more other entities, an entity that carries on a financial services business.

Between 28 July 2020 and 14 December 2020, while a director and responsible manager of Australian financial services (AFS) licensee Suetonius Wealth Management Pty Ltd, Mr Surtenich recommended to at least 18 clients that they invest in a ‘Principal-protected Private Placement Program’ which offered ‘high yield’ returns.

ASIC determined that in recommending these investments, Mr Surtenich failed to comply with financial services law by making dishonest representations that the investment was ‘capital protected’, was ‘similar to’ a cash investment, and could generate high returns. Mr Surtenich had no basis for making the representations.

Additionally, ASIC determined that Mr Surtenich lacked the necessary judgement and competence to be a financial adviser. ASIC found that in arranging transfer of client funds to another Australian entity to obtain a so-called ‘stand-by letter of credit’, Mr Surtenich ought to have been alerted to potential ‘red flags’ as to the authenticity of the transaction, including in relation to the payment of subsequent fees to a bitcoin wallet of an alleged banking institution.

Mr Surtenich has been permanently banned because he acted dishonestly and showed a fundamental lack of knowledge and judgement, integrity, trustworthiness and professionalism.

Mr Surtenich has the right to appeal to the Administrative Review Tribunal for a review of ASIC’s decision.