The Australian Securities and InvestmentsCommission (ASIC) has received an enforceable undertaking from the owner of an Adelaide-based financial services firm who offered services that failed to comply with its Australian Financial Services licence (AFSL) responsibilities.
Newstar Securities sole director Michael Gordon O’Shaughnessy undertook not to carry on a financial services business for a period of 10 years, or hold out that he holds an AFSL during the period or provide a financial service.
O’Shaughnessy’s undertaking follows an order of the Federal Court of Australia on August 29, last year, that Newstar Securities be wound up, followed four days later by ASIC’s cancellation of its AFSL.
He offered his undertaking to the regulator yesterday after investigations revealed he had failed to implement the unnamed consultant’s recommendations on his AFSL obligations, made after a review of Newstar’s client files.
ASIC also found that he failed to ensure that Newstar complied with its AFSL obligations by lodging an audit report, profit and loss statement or balance sheet for the financial year ended June 30, 2006.
