The Australian Securities and Investments Commission (ASIC) has cancelled Melbourne-based OTC derivative issuer, Berndale Capital Securities’, Australian financial services (AFS) licence and its former director, Stavro D’Amore, has been banned from providing financial services for six years.
Following an administrative hearing, the regulator found that, among other things, Berndale:
- Failed to take reasonable steps to ensure that its representative complied with financial services laws;
- Failed to provide financial services efficiently, honestly and fairly;
- Failed to comply with the client money reporting requirements;
- Failed to lodge annual financial statements, and audit reports; and
- Was likely to contravene its general obligations under an AFS licence.
The regulator also found D’Amore was involved in contraventions of financial services laws by Berndale, and was not adequately trained or competent enough to provide financial services.
ASIC commissioner, Cathie Armour, said AFS licensees must ensure that they comply with their reporting competence and resourcing obligations.
“If an AFS licensee chooses to allow other entities to operate under its license, ASIC expects that the licensee will ensure that the representatives are not providing unlicensed financial services and are properly monitored,” she said.