Noticed this on the ASIC website which may be of interest.....

04-132 Traders eligible for seminar refund under enforceable undertaking

Wednesday 5 May 2004

The Australian Securities and Investments Commission (ASIC) has acted to protect the interests of participants who attended educational seminars conducted by Mr John Duggan of Ulmarra in New South Wales, under the business name Forex Pacific.

ASIC has accepted an enforceable undertaking from Mr Duggan following concerns that financial product advice was provided during the course of the Forex Pacific educational seminars, and that Mr Duggan was arranging for participants to deal in financial products.

As Mr Duggan does not hold an Australian Financial Services Licence (AFSL) and is not an authorised representative of an AFSL holder, he is not licensed to provide financial product advice or arrange for people to deal in financial products.

Under the enforceable undertaking, Mr Duggan has agreed to advise his clients of ASIC's concerns with an agreement with United States-based broker Forex Capital Markets LLC (US Capital), and refund all referral fees he has received under the agreement to clients who request a refund from him.

In addition, Mr Duggan has undertaken to:

terminate his agreement with US Capital;
advise his clients that under the agreement with US Capital, he received a referral fee for each transaction his clients effected through US Capital;
advise his clients of ASIC's concerns that Mr Duggan and his representatives may be giving financial advice without being licensed;
advise his representatives that ASIC is concerned they may be giving financial advice without being authorised by an AFSL holder; and
post a notice on the Forex Pacific website about ASIC's concerns for a period of 21 days.
Further, Mr Duggan has agreed to provide ASIC with all contact details of his clients and representatives to ensure he has complied with the terms of the undertaking.

'Individuals who provide educational services and do not hold an AFSL must not arrange for consumers to deal in financial products or give financial product advice', ASIC Deputy Executive Director of Enforcement, Mr Allen Turton said.

'Licensing requires people who provide financial product advice or arrange for consumers to deal in financial products to disclose the various risks associated with dealing with financial products or accepting financial advice.

'ASIC has taken action to stop the seminars in contravention of the Corporations Act to protect consumers who did not receive the benefit of these disclosures, and who may not have been aware of the potential risks in accepting the advice that was provided during the seminars', Mr Turton said.
Background

The Forex Pacific educational seminars were offered through workshops and over the Internet.

In the seminars, Mr Duggan trained participants to use the trading platform software of US Capital. He and his representatives also made recommendations about trading in the foreign exchange market during the seminars and subsequent chatroom discussions.

Mr Duggan had an agreement with US Capital under which he was obliged to refer clients to US Capital. In return, US Capital paid him a referral fee for every trade a client transacted through US Capital.

Clients were also able to open a trading account with US Capital by forwarding a completed application form to Mr Duggan or by following a link on the Forex Pacific website.

End of release

http://www.asic.gov.au/asic/asic_pub...g?openDocument