ASIC penalises Berndale Capital Securities
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.
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.
