The Australian Securities and Investments Commission (ASIC) banned the promoter of a non-existent managed fund from providing financial services after finding he had engaged in in misleading and deceptive conduct.
ASIC banned Paul Duncan, of Carrara, Queensland – who was the sole director of Active Capital Managers Pty Ltd (ACM) from February 2011- for a period of four years.
The ban came about after ASIC found false or misleading representations on ACM’s website from around August 2013 onwards relating to the Exalt Managed Futures Fund.
Those representations, which ASIC considered as false and misleading were likely to give the impression that the fund existed and was offered by Exalt Global Fund Limited, a separate firm which does hold an Australian Financial Services Licensee.
ASIC was also concerned that it appeared the fund was fully regulated and trading at low risk whilst generating high returns when in fact it had never existed, nor did it operate under any financial services licence, and it was not regulated or trading when the representations were made
ASIC Commissioner Greg Tanzer said the law required that financial products be offered by licensed businesses and that the promotion and advertising of financial products did not mislead or deceive investors
Duncan has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
