Receiver appointed to former OTC derivates issuer
The Australian Securities and Investments Commission (ASIC) will appoint a receiver to former OTC derivatives issuer Berndale Capital Securities, following a successful application to the Federal Court.
The regulator sought the application following concerns about Berndale’s records, handling of client money, adequacy of client money reconciliation reports, and allegations that client monies were being held outside of Australian authorised deposit-taking institutions in breach of the law.
This decision followed the cancellation of Berndale’s Australian financial services licence on 22 November, 2018.
The orders extended to appointing receivers and managers for Berndale’s related companies, Berndale Capital Securities Management and Algoplus, as well, based on ASIC’s belief that the financial affairs of each company were extensively intermingled.
Both ASIC’s investigation and the proceedings before the Federal Court were ongoing, with the receivers requires to report back to the court on the matter by the end of May. Rachel Burdett-Baker and Bruno Secatore of Cor Cordis in Melbourne were appointed to act as joint and several receivers.
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.
