The step was taken after ASIC found out that Khoo was not complying with the laws of financial services.
Khoo was an authorized representative of Professional Investment Services Pty Ltd and provided financial advice to clients of his business known as Alec Khoo & Associates.
According to ASIC, Khoo failed to have a reasonable basis for advice that clients borrow funds through a margin lending facility and invest a substantial portion of those funds in cash investments for up to three years.
Meanwhile, the advice resulted in a loss to a significant portion of the client’s investment portfolio, as the interest paid on the borrowed funds was higher than the interest earned on the cash investments.
ASIC also found out that Khoo had failed to provide statements of advice to clients when required to do so.
Moreover, ASIC alleges Khoo of having failed to include mandatory information about margin lending facilities in statements of advice and also provided a statement of advice to a client, which contained information that was likely to mislead.
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Meanwhile, Khoo has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.