ASIC bans former NextGen Financial Group directors

ASIC banned two former NextGen Financial Group directors from working in financial services for three years for failing to comply with Australian Financial Complaints Authority (AFCA) determinations.

Nicholas Duncan Jeremy Brookes and Vittorio Vincenzo Turco were each banned from managing or controlling financial services businesses for three years for their connection to NextGen's refusal or failure to comply with at least two AFCA determinations.

These related to complaints about inappropriate financial advice involving the establishment of SMSFs to purchase property.

The unpaid determinations left affected consumers out of pocket and ultimately resulted in compensation being paid through the Compensation Scheme of Last Resort (CSLR).

Brookes' banning took effect on July 15. He is prohibited from controlling an entity carrying on a financial services business and from performing any function involved in operating such a business, including as an officer, manager, employee or contractor.

Turco is similarly prohibited from controlling a financial services business and from serving as an officer of an entity carrying on that business. His ban took effect on July 17.

The action follows the collapse of NextGen Financial Group, which was wound up shortly after failing to comply with an AFCA determination that was subsequently escalated to the Federal Court.

NextGen's AFSL was active from February 2004 until February 2024.

One of the firm's former clients, WJ & V Drakoulis Super, sought to wind up the company after it failed to pay more than $270,000 owed under an AFCA ruling.

AFCA had ordered NextGen to pay $270,523.67 after the firm accepted the determination on 24 November 2022 and agreed to make payment within 28 days. The payment was never made.

The group, formerly known as The FinancialLink Group and previously owned by Beacon Financial Group, was an AFCA member from November 2018 to November 2024.

Both men have the right to seek a review of ASIC's decisions through the Administrative Review Tribunal.