Romad manager banned over deceptive behaviour

Rory Deutsch was a former property spruiker and the key person responsible for Romad Financial Services' licence since 2004. ASIC found he failed to comply with financial services laws between April 2008 and the end of April this year, authorised the founder of failed broker Sonray to act as his authorised representative, sold stakes in two managed investment schemes without a licence and marketed those schemes deceptively. As a result he has been banned from providing financial advice for four years.

ASIC said Romad Financial Services, through Rory Deutsch, sold stakes in two managed investment schemes despite lacking the necessary licence and marketed those schemes in a deceptive way. ASIC has also tried to cancel Romad's Australian financial services licence, though that cancellation action is stayed until a hearing at the Administrative Appeals Tribunal.

In February Romad gained approval to make Sonray founder Russell Johnson an authorised representative through his private company RJ Capital. ASIC later revoked Johnson's authorisation on August 1 at his request, and in September he was charged with 24 offences related to Sonray's collapse, including theft and false accounting. Johnson's court case is due to return next month, according to the article.

Yes. Rory Deutsch has the right to appeal ASIC's decision to the Administrative Appeals Tribunal (AAT). ASIC's attempt to cancel Romad's financial services licence is also stayed pending a hearing at the tribunal, so the AAT will play a central role in any appeal or licence dispute.

According to AAT records and court actions referenced in the article, Mr Deutsch was an "enthusiastic" supporter of investment in Norm Carey’s Westpoint when he was compliance and technical manager at Glenhurst. The tribunal previously banned Glenhurst’s director Anthony Kofkin over Westpoint related sales in 2009. ASIC also convinced the Victorian Supreme Court to wind up Business Strategies No.5, a retirement village company of which Mr Deutsch was a director, in 2007.

A four-year ban prevents the banned individual from giving financial advice or acting in roles that require an Australian financial services licence. For everyday investors this is a protection measure by ASIC to limit the person’s ability to influence investments while regulatory concerns and legal processes are ongoing.

When ASIC investigates and takes action—such as banning advisers, revoking authorisations or seeking to cancel licences—it signals serious compliance or conduct issues. For investors in managed investment schemes, those actions can lead to loss of confidence, potential legal proceedings, and in some cases the winding up of companies, as seen with Business Strategies No.5 and the Sonray collapse mentioned in the article.

Investors should check whether an adviser or company holds an Australian financial services licence, confirm authorised representative status, review official ASIC announcements, and be cautious of aggressive or unclear marketing. The article shows that deceptive marketing and unlicensed sales can precede regulatory bans and criminal charges, so verifying credentials and seeking independent advice is wise.