ASIC has canceled the AFS license of Professional Wealth Management Services Pty Ltd (PWMS)

According to ASIC, ASIC has issued a permanent ban against Donald James Cuthbertson, prohibiting him from engaging in any financial services activities, overseeing financial service operations, or controlling entities involved in financial services.

Furthermore, ASIC has revoked the Australian Financial Services (AFS) license held by Mr. Cuthbertson's company, Professional Wealth Management Services Pty Ltd (PWMS). The license cancellation comes with a stipulation that the mechanisms for resolving disputes externally and compensating clients must remain in place for a duration of 12 months.

Mr. Cuthbertson holds directorship positions in three companies: PWMS, Professional Wealth Management Pty Ltd (PWM), and Professional Wealth Investments Pty Ltd.

ASIC's decision is rooted in concerns surrounding Mr. Cuthbertson's actions related to:

Offering of redeemable preference shares in PWMS.

Offering of unlisted shares in PWM.

Promotion of a trading course centered on contracts-for-difference.

Engaging in unlicensed dealings with derivatives.

Upon investigation, ASIC determined that Mr. Cuthbertson is unsuitable to provide financial services due to the following:

Misappropriation of investor funds.

Dissemination of false or deceptive information in connection with the redeemable preference shares offered by PWMS and unlisted shares offered by PWM.

Dissemination of inaccurate risk assessments in relation to trading contracts-for-difference.

Unauthorized involvement in derivatives trading.

Based on these findings, PWMS's AFS license was revoked due to the following lapses:

Failure to ensure that financial services were administered in an efficient, honest, and equitable manner.

Inadequate arrangements for managing conflicts of interest.

Non-compliance with the license condition mandating maintenance of total assets exceeding liabilities as indicated in the latest balance sheet submitted to ASIC.

Both Mr. Cuthbertson and PWMS retain the option to appeal ASIC's decision by seeking a review from the Administrative Appeals Tribunal.

The ban against Mr. Cuthbertson has been officially recorded on ASIC's register for banned and disqualified individuals.

Background:

PWMS, a Sydney-based Australian financial services business, has held AFS license no. 468125 since March 11, 2015. Mr. Cuthbertson assumed directorship of PWMS on July 29, 2014, and has functioned as the principal figure under the license since March 11, 2015.

From July 2015 to September 28, 2022, and subsequently from December 9, 2022, Mr. Cuthbertson served as an authorized representative of PWMS.