The Australian financial watchdog's probe into McCarthy's conduct found he forged documents in order to comply with an internal audit.

The Australian Securities and Investments Commission has banned a former financial advisor from entering the industry for eight years after an investigation found he created and backdated statements of advice and forged clients’ signatures.

James McCarthy, the sole director of McCarthy Financial Solutions in South Australia, was also an authorised representative of AMP Financial Planning from December 2011 through to April 2015.

ASIC discovered that McCarthy fabricated and backdated statements of advice and authority to proceed documents, then forged his clients’ signatures for the purpose of complying with an internal audit conducted by AMP Financial Planning in March 2015. He failed to provide any of the fraudulent documents to his clients.

“ASIC is committed to raising standards of conduct and compliance in the wealth management industry and will act to remove advisors who engage in misleading conduct,” said ASIC deputy chair Peter Kell.

McCarthy has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

This publication will continue to monitor this case and update coverage accordingly.