The Australian Securities and Investments Commission (ASIC) has permanently prohibited Donald James Cuthbertson from providing any financial services, performing any functions related to the conduct of financial services business, and controlling entities conducting financial services business.。

ASIC has also cancelled the Australian Financial Services (AFS) licence for Mr Cuthbertson's company, Professional Wealth Management Services Pty Ltd (PWMS), on condition that external dispute resolution and arrangements to compensate customers remain in place for 12 months.。

Mr. Cuthbertson is a director of PWMS, Professional Wealth Management Pty Ltd (PWM) and Professional Wealth Investments Pty Ltd, and his actions have raised concerns for ASIC:

• Offer for Redeemable Preferred Stock in PWMS
  Offer of unlisted shares in PWM
  Promotion of trading courses involving CFDs
  Unlicensed Derivatives Trading

The regulator found that Mr Cuthbertson was not a fit and proper person to provide financial services, that he had misappropriated investor funds and made false statements about redeemable preferred shares he had offered in PWMS and unlisted shares in PWM.。

Mr. Cuthbertson also made false statements about the level of risk involved in CFD trading and was involved in derivatives trading without proper authorization.。

The cancellation of PWMS's AFS licence was based on the findings against Mr Cuthbertson that PWMS had failed to take all measures necessary to ensure that its financial services were provided efficiently, honestly and fairly and that it had failed to ensure that appropriate arrangements were in place to manage conflicts of interest.。The company also failed to comply with licensing conditions requiring PWMS to maintain total assets in excess of total liabilities, such as the licensee's updated balance sheet filed with ASIC.。

Mr. Cuthbertson and PWMS have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision。