The Administrative Appeals Tribunal (AAT) has amended the Australian Securities and Investments Commission’s (ASIC’s) decision to ban Mark Schroeder from providing financial services.
In February 2020, ASIC banned Schroeder from providing financial services for six years for his role in numerous compliance failures by Spectrum Wealth Advisers.
Schroeder was a director, chief executive, responsible manager and a key person for Spectrum and appealed the decision to the AAT.
ASIC’s decision was broadened by the AAT to ban Schroeder from providing any financial services and performing any function involved in the carrying on of a financial services business, as well as controlling an entity that carries on a financial services business for a period of six years.
The AAT found that Schroeder:
- Was not a fit and proper person to provide financial services;
- Was involved in contraventions of financial services laws by Spectrum;
- Was not adequately trained or competent to manage the provision of financial services; and
- Might be involved in the contravention of financial services laws in the future.
In its decision, the AAT found that evidence of Spectrum’s failure to monitor and supervise its representatives was indicative of a culture that promoted growth over compliance, and that Schroeder contributed to that culture by occupying senior roles in which he did not perform as was required.
Danielle Press, ASIC commissioner, said: “The decision is a clear reminder to officeholders that they cannot disclaim responsibility for their regulatory obligations and must faithfully, competently, fearlessly and diligently discharge their roles”.