ASIC bans CEOs for six years
The two joint chief executive officers of a managed investment scheme operator, Australian Mutual Holdings Limited, have been banned for providing financial services for six years following an investigation by the Australian Securities and Investments Commission (ASIC).
The regulator made the decision after finding that Jeffrey Worboys and Matthew Barnett, the two CEOs, had failed to act in the best interests of members of the Courtenay House Capital Investment Fund or exercise the degree of care and diligence required when establishing the fund.
The Courtenay House fund was one of several managed investment schemes managed by Australian Mutual Holdings.
ASIC found that Worboys and Barnett’s failures included:
- Failing to ensure that the persons responsible for trading funds had the requisite qualifications and experience to manage a foreign exchange and derivatives fund;
- Not maintaining the high standards expected to a financial services adviser;
- Being unreliable in discharging the duties and obligations imposed on a financial services provider;
- Not being competent to provide a financial service; and
- Being likely to contravene a financial services law.
The two men were joint CEOs of the company until February, last year, with Worboys now remaining as the sole CEO.
In a separate investigation, ASIC previously took action to wind up Courtenay House Capital Trading Group and Courtenay House, with the Supreme Court of New South Wales appointing liquidators to both companies.
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