FPA to review member involvement in MFS saga

Earlier this week, ifa revealed that Paul Manka and Michael Hiscock, two former directors of the collapsed investment firm MFS Investment Management, are operating in the financial advice industry, licensed by Ramshead Investors and IOOF respectively.

ASIC data indicates that both Mr Manka and Mr Hiscock became Certified Financial Planners in 1995 and are both current members of the Financial Planning Association.

The two FPA members were not among the MFS directors who earlier this month were convicted of more than 200 contraventions of the Corporations Act relating to misappropriation of $147.5 million in investor funds, instead remaining unnamed in a judgment by the Supreme Court of Queensland.

However, the professional association says it will be reviewing whether an investigation into the activities of these two members while directors of MFS is warranted.

“The FPA has reviewed the ASIC announcement. No current FPA member has been banned by ASIC,” an FPA spokesperson told ifa.

“The FPA will review the court judgement to ascertain whether any investigation or other action is required concerning any current FPA member.”

In February, the FPA banned former financial advisers Shylesh Siranjan and Darren Tindall from its membership.

The news comes as retired financial adviser Brian Boggs has penned an opinion piece for ifa arguing that “codes of conduct and CFP designations don’t necessarily mean ethical behaviour”.

MFS Investment Management mentioned in this story is in no way related to the Boston-based investment management group of the same name.