Former Provident Capital director gets banned
The Australian Securities and Investments Commission (ASIC) has banned a former Sydney director of Provident Capital from providing financial services for two years for failing to comply with financial services laws.
Provident's former non-executive director, John Patrick Sweeney, was found to engage in misleading or deceptive conduct in relation to a financial product during September 2010 to March 2012. Sweeney approved Provident Capital's Quarterly Reports and Benchmark Reports issued to ASIC and Australian Executor Trustees Limited.
On 3 July 2012, Provident went into receivership, and had its Australian Financial Services Licence suspended on 15 October 2012, by ASIC. The firm went into liquidation on 24 October 2012.
Earlier this year, the firm's managing director, Michael Roger O'Sullivan, was banned by ASIC from managing corporations for five years, and from providing financial services for seven years.
Provident Capital issued debentures to retail investors through their Fixed Term Investment Portfolio and advanced the debenture funds to third part borrowers, including property developers, on a first mortgage basis.
The firm also operated a mortgage fund under a wholesale facility with Bendigo and Adelaide Bank and two managed investment schemes.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
