ASIC has permanently banned a Sydney-based director and cancelled the AFSL of his company McFaddens Securities after concerns about him making offers of investment in unlisted shares.
David Henty Sutton has been permanently banned from providing any financial services, performing any function involved in the carrying on of a financial services business, and controlling an entity that carries on a financial services business.
He has also been disqualified from managing corporations for five years.
ASIC’s concerns arose out of Sutton’s conduct in making offers of investment in unlisted shares via McFaddens to Australian and overseas investors in companies including Steppes Alternative Asset Management, Trinus Impact Capital, Avalon Pacific Group Limited, and ASAF Critical Metals and its Australian subsidiary Aus Streaming Limited.
These are the same companies involved in a case from April 2023, where a Brisbane-based adviser, Kristofer Ridgway, was permanently banned. Ridgway worked at Shaw and Partners, where he recommended clients in international unlisted shares sourced by McFaddens.
ASIC determined that Sutton is not a fit and proper person to provide financial services due to his conduct when he:
- Induced another person/s to deal in financial products by making a statement that is misleading, false, or deceptive or by a dishonest concealment of material facts.
- Made false, misleading, or deceptive representations in his capacity as a director of McFaddens and APG to potential investors.
- Engaged in conduct regarding a financial product that was misleading and deceptive or was likely to mislead and deceive.
- Did not take reasonable steps to ensure McFaddens’ representatives did not accept conflicted remuneration.
- Was involved in and facilitated misconduct by Ridgway.
The AFSL of McFaddens Securities Pty Ltd, now known by its previous name APC Securities Pty Ltd, has also been cancelled by ASIC.
McFaddens and Sutton have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
His banning is recorded on ASIC’s banned and disqualified register.
