Two directors of self-managed superannuation funds (SMSFs) have been banned for life, and another for seven years, after the corporate regulator successfully obtained orders from the Supreme Court of Victoria.
The court disqualified Shaun White and Nicole White from managing corporations for life, restraining them from carrying on business or dealing in superannuation interests, financial services or financial products.
This is the first time the court has taken such action.
Justice Hargrave also made orders banning Damian Tolson from managing corporations for seven years.
The court found Tolson acted in good faith, but that his conduct amounted to gross negligence.
The conduct of the three former directors relate to their role as directors of a number of companies involved in the Personalised Finance Services group (PFS Group).
The Australian Securities and Investments Commission (ASIC) alleged the actions of the group and directors was to set up SMSFs and either induce or misappropriate funds from the SMSFs for property development projects involving the directors.
The court also made declarations that Mr and Ms White had engaged in conduct that was false and misleading in operating a financial services business, and that together with Tolson they had acted in contravention of Corporations Act provisions relating to directors’ duties.
“It’s strongly advisable that consumers considering setting up a self-managed superannuation fund satisfy themselves that they deal with reputable people, and that they have sufficient funds available to enable the fund to be cost effective,” ASIC executive director of enforcement Jan Redfern said.
