The three weeks around Christmas and New Year have seen the corporate regulator accept multiple enforceable undertakings (EUs), pursue a number of financial advisers in court and lodge its fourth major submission to the Senate inquiry, among other endeavours.
One of the most important announcements made by the Australian Securities and Investments Commission (ASIC) during the holiday season was its fourth submission to Senate's inquiry into the inner workings of the corporate regulator, in which it further elaborated on the Commonwealth Financial Planning (CommFP) enforceable undertaking and the methods used to compensate clients.
The regulator has also accepted EUs from the National Australia Bank, UBS, CommSec and Ausiex, while Macquarie Bank paid a $175,000 infringement notice penalty.
Earlier in December, ASIC issued a class order and a no-action position to assist the industry with the implementation of recent superannuation reforms, having also helped the International Organization of Securities Commissions (IOSCO) to develop a report on regulation of retail structured products.
Furthermore, a former Millenium3 financial adviser Melinda Scott has pleaded guilty to a $5.9 million fraud, after ASIC's investigation uncovered her misconduct. Meanwhile, former Storm Financial adviser and rugby league player Walter Fullerton-Smith was charged with misleading an elderly couple in 2007 with the intent to obtain financial advantage for himself and his wife, according to the regulator's announcement.
In other news, ASIC has permanently banned convicted director of Dollarforce, Clestus Weerappah, who was also ordered by the court to pay $3.7 million to a number of investors. His company Dollarforce Financial Services collapsed in 2009 with a deficiency of $24 million, with investors losing more than $8 million.
ASIC has also obtained orders preventing Queensland financial adviser Thanh Quoc Tu from leaving Australia, after alleging Tu was involved in suspected fraud.
Just before Christmas, the regulator announced it had permanently banned former chief executive officer of Wickett Investments, Bruce Wickett, from providing financial services after being convicted for fraud amounting to more then $660,000.
An ASIC investigation also led to directors of collapsed firm Selection One Finance (which promised investors a return of 36 per cent), David Williams and Gary Maile, being charged with dishonest conduct.
False advertising was also on ASIC's radar during the holidays, with SMSF Property Capital paying a $10,200 penalty for making potentially misleading statements about "ASIC approved" financial products.
ASIC closed off the year by announcing that Jane Gouvernet had been appointed as Acting Regional Commissioner for Western Australia (WA), following the retirement of long-standing WA Regional Commissioner, Bruce Dodd.
