ASIC bans Sydney adviser for five years
The Australian Securities and Investments Commission (ASIC) has banned a former Sydney financial adviser for five years after running up debts of $9.8 million.
Daniel McSweeny was a former director of 14 failed companies which he used to operate as financial services businesses. The companies were placed into administration between 21 August 2014 and 8 September 2015, owing $9.8 million to their creditors.
A person can be disqualified by ASIC if they were an officer of two or more companies which were wound up and a liquidator provided a report to ASIC about the company’s inability to pay its debt.
ASIC found McSweeny had fraudulently misappropriated company money, used the company structure for his own dishonest means and showed a complete disregard of his director duties.
He also failed to observe requirements to lodge documents with the Australian Taxation Office (ATO), to ensure companies complied with their obligation to keep written financial records and to prevent the companies from trading while possibly insolvent.
McSweeny’s ban came into force on 2 May 2019 and will last until 1 May 2024.
AUTHOR
Laura Dew
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
