Aggregated News From Investment Management Regulators

Australia

Former employment agency director pleads guilty to directors’ duties charge

Former employment agency director Raita Konita Pakoti, also known as Rachel Edwards, of Werribee, Victoria, has pleaded guilty to one count of breaching her directors’ duties. From 9 February 2009 to 26 January 2016, Ms Edwards was the sole director of employment agency Westpower Victoria Pty Ltd (In Liquidation) (ACN 135 293 873). ASIC alleged that between 15 January 2010 and 23 September 2011, Ms Edwards made 175 withdrawals totalling $619,897.71 from a Westpower bank account and deposited the funds into a personal account. Westpower went into liquidation on 5 January 2012 with debts totalling more than $930,000, including $735,680.36 owed...

ASIC bans convicted former director for three years

ASIC has banned former Radar Iron Limited and Armada Capital Pty Ltd director Ananda Kathiravelu, of Perth, WA, from providing financial services for three years, following his conviction for market manipulation offences. Mr Kathiravelu was convicted in the Supreme Court of Western Australia in February 2021 for conspiring to manipulate the market for Radar Iron shares traded on the ASX between 12 May 2016 and 17 May 2016. He was sentenced to twelve months’ imprisonment and released on recognisance in the sum of $10,000 (21-020MR). In banning Mr Kathiravelu, ASIC found that Mr Kathiravelu had not complied with financial services law...

ASIC consults on proposals to remake relief for business introduction services

ASIC has today released a consultation paper seeking feedback on proposed changes to the relief for business introduction services. The original Class Order, Business introduction and matching services, gave conditional relief from the fundraising, financial product disclosure, hawking and advertising requirements in the Corporations Act 2001 that would apply to a person making or calling attention to offers of securities or interests in a registered managed investment scheme through a business introduction service. The relief provided under ASIC Corporations (Repeal and Transitional) Instrument 2017/186, which preserves the effect of CO 02/273, is due to expire on 1 April 2022. Consultation Paper...

Victorian former company director pleads guilty to making a false statement to ASIC

Jim (Dimitrios) Bakos of Thornbury, Victoria, has pleaded guilty and been convicted of making a false or misleading statement to ASIC. Mr Bakos appeared in the Melbourne Magistrates Court on 24 January 2022 and pleaded guilty  to making a false or misleading statement to ASIC when he lodged a form to deregister a company known as VFD Pty Ltd ACN 105 333 579 (Deregistered) (“VFD”) and declaring that it had no liabilities.  At the time of lodging the form, VFD in fact owed $11,106.19 to one of its former employees Mr Bakos was sentenced to a $3000 fine. Prior to sentencing, Mr...

Former Spaceship Capital CEO banned from providing financial services

ASIC has banned former Spaceship Capital Limited director and CEO Paul Kevin Bennetts, of Elanora Heights, New South Wales, from providing financial services for a period of 6 years, after an ASIC investigation found he had dishonestly obtained his Australian Institute of Company Directors (AICD) qualification. Mr Bennetts was a director and responsible manager of Spaceship Capital and the company’s CEO between 2017 and 2019. Spaceship Capital operates managed investment schemes and is the promoter of the Spaceship Super Fund. Around October 2018, Mr Bennetts asked a Spaceship Capital compliance officer to complete his assessments for an AICD course on his...

ASIC embarks on regtech innovation initiative into poor market disclosure

ASIC will be working with five regulatory technology (regtech) entities – Bedrock AI Aus Pty Ltd, DigitalX Limited, Eastern Analytica Pty Ltd, Listcorp Pty Ltd and Pyxta Pty Ltd for the Business Research and Innovation Initiative (BRII) Regulatory Technology (Regtech) Round, dealing with the challenges of corporate disclosure. Initiated by the Department of Industry, Science, Energy, and Resources and announced today, this latest BRII round assesses the potential of regtech to solve challenges across government agencies and departments. ASIC’s selected challenge explores the potential of using technology to help identify and assess poor market disclosure by listed companies. Grants of up...

ASIC consults on revised ETP naming conventions

ASIC has today released Consultation Paper 356 ETP naming conventions: Updates to INFO 230 (CP 356), seeking feedback on proposals to update the guidance in Information Sheet 230 Exchange-traded products: Admission guidelines (INFO 230), on naming conventions for licensed Australian exchanges that admit exchange traded products (ETPs). Because ETPs have different structures, features, strategies and risks to traditional warrants and listed products (including Listed Investment Companies and Listed Investment Trusts), we consider they should be labelled in a way that differentiates them from other listed products. Key areas of focus for market operators and issuers in CP 356 include: revised naming...

Warning: Self-managed super funds and crypto investments

ASIC has noticed an increase in marketing recommending Australians switch from retail and industry superannuation funds to self-managed superannuation funds (SMSFs) so they can invest in a ‘high return’ portfolio SMSF trustees are being targeted to invest in crypto-assets (or cryptocurrencies) Superannuation is an attractive target for scammers Crypto-assets are a high risk and speculative investment ASIC is reminding superannuation fund members it is best practice to seek advice from a licensed financial adviser before agreeing to transfer superannuation out of a regulated fund into an SMSF Consider the risks before setting up an SMSF Setting up an SMSF is...

Enrolments for the February sitting of the financial adviser exam close 28 January 2022

The first sitting of the financial adviser exam for 2022 commences 17 February 2022. Do not forget to enrol by 28 January 2022. To enrol, navigate to the exam booking site on the Financial Advice Hub. Enrolments for the February sitting of the financial adviser exam are now open and will close on 28 January 2022. The dates of the February sitting are as follows: Sitting 16 Exam Month Exam Date February 2022 Thursday 17/2 Friday 18/2 Saturday 19/2 Monday 21/2 Candidates will be able to choose to sit the exam at an exam centre in the following locations: Adelaide Brisbane Canberra Darwin Hobart Melbourne Perth Sydney Exam centres operate to a staggered...

Former director of Blue Star Helium (formerly Antares Energy and Big Star Energy) James Cruickshank penalised and disqualified

On 16 December 2021, the Federal Court ordered James Cruickshank, Blue Star Helium’s (formerly Antares Energy and Big Star Energy) former CEO, be disqualified from managing corporations for four years and pay a $40,000 pecuniary penalty. The Court found Mr Cruickshank failed to discharge his duties as a director, to act with the degree of care and diligence required of his position, in considering whether information in his possession as a director needed to be disclosed to the ASX. The penalties follow an earlier judgment on 9 October 2020 (20-283MR), finding: Blue Star Helium breached continuous disclosure laws with ASX announcements...

SR & Associates Pty Ltd not licensed to provide debt management services

On 17 December 2021, SR & Associates was advised by ASIC that its application for an Australian Credit Licence to provide debt management services was taken to be withdrawn. As a result of that withdrawal the National Consumer Credit Protection Act 2009 (National Credit Act) prohibits SR & Associates from providing debt management services after that date. Previously, SR & Associates Pty Ltd (SR & Associates) was able to operate a debt management service because it had applied for a licence, and that application had not been dealt with by ASIC or withdrawn. ASIC reminds credit licensees that under section 31...

ASIC disqualifies former building and construction industry director

Stephen John Thomas, of Highfields, Queensland, has been disqualified from managing corporations for 18 months due to his involvement in four failed companies. Mr Thomas was a director of four companies which entered into liquidation between 2018 and 2019: Logical Insight Pty Ltd (ACN 624 001 289) Panoramic Homes SA Pty Ltd (ACN 620 694 073) Liberty Homes Australia Pty Ltd (ACN 168 418 399) Alliance Investment Group Pty Ltd (ACN 625 973 908) Panoramic Homes SA and Liberty Homes Australia were building and construction companies.  Logical Insight provided appointment booking and other professional services for related entities operating within the...

Regulator Information

Abbreviation: ASIC
Jurisdiction: Australia

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This post was translated by Regulatory.News for informational purposes only; the content below is not an official translation from the regulator. See the content...

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