The corporate regulator found that Walters, a director and the sole responsible manager for Australian financial services licensee, Consolidated Mercantile Group Ltd (CMG), was not competent and not a fit and proper person to perform these roles.
From 2005 to March 2019, Walters was a director, shareholder and the sole responsible manager of CMG. In March 2019, Walters sold CMG to another company but remained a director and the sole responsible manager.
ASIC found from March 2019 to August 2021, Walters failed to monitor and oversee CMG’s business, including its bank accounts and client accounts, and failed to ensure that CMG complied with financial services laws. It was also found that Walters failed to address concerns raised by ASIC regarding CMG’s conduct.
ASIC expected responsible managers to be actively involved in their licensee’s financial services business, which included being directly responsible for significant day-to-day decisions.
When Walters ceased to be involved in CMG’s business in 2019, he should have arranged for a replacement responsible manager to ensure the business was being monitored and oversight was provided, the regulator said.
Walters’ banning was recorded on ASIC’s publicly available Banned and Disqualified persons register.
Walters had the right to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.
