ASIC AU

ASIC has suspended the Australian financial services (AFS) licence of Cartesian Corporate Finance Limited (Cartesian) until 25 August 2023. The licence authorises Cartesian to deal in securities and interests in managed investment schemes and provide financial product advice for wholesale clients. ASIC suspended the licence on the basis that Cartesian has ceased to carry on a financial services business. ASIC may cancel the licence if, by the end of the suspension period, Cartesian is not in a position to recommence its financial services business. Cartesian may apply to the Administrative Appeals Tribunal for a review of ASIC’s decision. Background Cartesian has held AFS licence...

Russell Sandiford, of Rockdale, New South Wales has appeared in the Downing Centre Local Court charged with dishonest conduct in relation to a financial product or service. Following an ASIC investigation into Mr Sandiford and his company, Reiwa-Capital Pty Ltd, it is alleged that Mr Sandiford obtained $459,489.70 from 79 clients between 3 January 2020 and 20 June 2022. ASIC alleges Mr Sandiford used the funds for his own benefit rather than for investment purposes as had been agreed with his clients. At the time of offending, it is alleged Mr Sandiford was not licensed to provide financial product advice. The matter...

ASIC has cancelled the Australian financial services (AFS) licence of ACVM Pty Ltd (ACVM) for failing to meet its financial reporting obligations. ACVM is permitted to provide financial services that are reasonably necessary for, or incidental to the liquidation and distribution of its assets and the winding up of its scheme until 30 June 2023. The licence authorised ACVM to deal in interests in managed investment schemes to wholesale clients. ACVM may apply to the Administrative Appeals Tribunal for a review of ASIC’s decision. ACVM may apply to the Administrative Appeals Tribunal for a review of ASIC’s decision. Background ACVM has held AFS licence no....

Trustees need to continue to focus on improving the life insurance they provide their members. A recent ASIC review highlights areas where trustees should be making meaningful improvements to deliver better member outcomes. In 2022, ASIC undertook a review to examine actions taken by a sample of 15 superannuation trustees to enhance their life insurance arrangements. The review looked at whether trustees had made progress in addressing the issues raised by ASIC in various public communications since 2019 and were meeting new regulatory obligations. ASIC’s findings are outlined in Report 760 Insurance in superannuation: Industry progress on delivering better outcomes for members (REP...

Speech by ASIC Commissioner Danielle Press at the Australian Institute of Superannuation Trustees Conference of Major Super Funds, 22 March 2023. Check against delivery Good morning and thank you to the Australian Institute of Superannuation Trustees for inviting me to speak today. In my opening remarks I would like to talk about ASIC’s insurance in superannuation report and then I will also talk about greenwashing and handling disclosures. Insurance in superannuation In early 2022, we commenced a review to examine what actions superannuation trustees have taken to make meaningful improvements to their life insurance arrangements in superannuation for the benefit of their members. Today we...

ASIC has disqualified James (Jim) Soong of Concord, NSW, from managing corporations for the maximum period of five years after his involvement in two failed companies. Between February 2020 and January 2022, Mr Soong was a director of two companies: Span Form Pty Ltd (ACN 169 669 881) (de-registered); and W. Resources Pty Ltd (ACN 632 004 267) Both companies were involved in the building and construction industry. ASIC found that Mr Soong failed to: meet statutory lodgement requirements with the Australian Taxation Office (ATO); pay statutory entitlements to ATO as well as State agencies for payroll tax and workers’ compensation insurance;...

ASIC has disqualified former director Roxanne Cornell of Kurunjang, Victoria, from managing corporations for the maximum period of five years due to her involvement in the failure of three companies. Between November 2015 and February 2020, Ms Cornell acted as the director of three companies in the construction industry: Coconut Post Tensioning Pty Ltd (ACN 618 427 482) (Coconut Post Tensioning); Coconut Group Pty Ltd (ACN 609 136 469) (Coconut Group); and Petrox Nominees Pty Ltd (ACN 622 608 459). Coconut Post Tensioning Pty Ltd provided concrete construction services, while Coconut Group operated a steel reinforcement and fabrication company. ASIC found that...

ASIC is seeking feedback from responsible entities of managed investment schemes and corporate directors of corporate collective investment vehicles (CCIVs) on proposals to remake ‘sunsetting’ class orders.  Consultation Paper 368 (CP 368) Remaking ASIC class orders: and  sets out ASIC’s proposals on: Class Order  Changing the responsible entity; and Class Order  Equality of treatment impacting on the acquisition of interests. These class orders relate to changing the responsible entity of a listed scheme and equal treatment obligations of a responsible entity and corporate director. They will expire (‘sunset’) on 1 October 2023 if not remade. ASIC considers the class orders are operating effectively...

On 17 March 2023, former Tesla Motors Australia Pty Ltd (Tesla Australia) director Kurt Schlosser, of Sydney, New South Wales, was sentenced in the Sydney District Court following his guilty pleas to two insider trading offences. Mr Schlosser was sentenced to two years and six months imprisonment, to be released immediately upon entering into a recognizance, on the condition that he be of good behaviour for two years and six months. In his role as country director of Tesla Australia, Mr Schlosser was informed of a confidential, in-principle agreement to be entered into by Tesla Inc in the United States of...

ASIC has provided conditional relief for life insurers from the design and distribution obligations (DDO) when reissuing life insurance policies in certain, limited circumstances. The relief is set out in ASIC Corporations (Design and Distribution Obligations—Reissued Life Policies Class Exemption) Instrument 2023/183. This relief will reduce the regulatory burden for life insurers so they can reissue pre-DDO policies in circumstances that have a low risk for consumer harm. DDO applies to financial products issued on or after 5 October 2021. For policies issued after 5 October 2021 the relief also provides for the correction of administrative errors and reinstatement of lapsed policies. Transactions which...

Mark Francis McCabe, of Roseville, New South Wales has appeared in the Downing Centre Local Court on further fraud charges. Mr McCabe was charged with eight counts of dishonestly obtaining a financial advantage by deception under s192E of the Crimes Act (NSW). It is alleged between 1 January 2015 and 28 April 2021, Mr McCabe dishonestly obtained a financial advantage in the amount of $940,350 from eight people, seven of whom were clients of his companies, Guevara Capital Access Pty Ltd (Deregistered) and Online Trading Capital Pty Ltd (Deregistered). Mr McCabe had previously been charged with one count of dishonestly obtaining property...

ASIC has made interim stop orders preventing Advance Asset Management Limited (Advance) from offering or distributing three funds to retail investors because of non-compliant target market determinations (TMDs). The funds are: Advance Balanced Multi-Blend Fund (ARSN 087 296 375), with $1.7 billion in assets under management (AUM); Advance International Shares Multi-Blend Fund (ARSN 087 295 501), with $1.4 billion in AUM; and Advance Property Securities Multi-Blend Fund (ARSN 094 112 580), with $1.1 billion in AUM. Advance Asset Management is the specialist asset management business within BT Financial Group. Advance held a total of approximately $27.8 billion in AUM across all...