Institute suspends adviser

Timaru financial adviser Neville Ian Cant has been suspended from the Institute of Financial Advisers after he failed to respond to complaints made against him.

Mr Cant, of Combined Financial Services, is the first person to be dealt with in such a way by the institute this year.

The suspension provision is intended to prevent members causing delays in dealing with complaints by not responding in a timely manner.

Institute president Lyn McMorran said the interim suspension did not mean Mr Cant had been found guilty of any charges, and the three complaints, relating to financial advice he had given, would continue to be dealt with by the professional conduct committee.

The committee requested a response from Mr Cant three times in relation to one of the complaints, but received no reply. The matter was then referred to the institute's disciplinary tribunal.

Following the suspension, Mr Cant indicated he intended to seek a hearing to apply for revocation of the suspension and to avoid publication of his name, but then withdrew the application.

Ms McMorran said the three complaints made against Mr Cant were effectively in limbo as the institute's independent disciplinary tribunal needed to hear from both the institute and Mr Cant. If he chose not to take part, it would be unable to proceed.

If a disciplinary tribunal finds against an adviser it can consider penalties including costs, a fine, publication of its decision and suspension from the institute.

The institute is a voluntary organisation with a code of ethics its 1300 members must adhere to.

An estimated 20 per cent to 30 per cent of those providing financial advice in New Zealand are members of the institute. There have been 115 complaints against members in the last four years, and in 22 cases the complaints have been upheld.

Rhys Morgan, a finance director who was fined $30,000 in Timaru District Court last month for breaching the Securities Act, was not a member of the institute.

Morgan was a company director of Investment Management, which issued securities in the Gables Proportionate Ownership Scheme. The company is also facing charges, as is Mr Cant, who was also a director of the company. He is due to take part in a defended hearing on the matters in March.

When approached for comment yesterday, Mr Cant said the complaints made to the institute were intertwined with the matters he would be defending in court. Because of that, he had opted not to make any comments to the institute at this stage.

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